AllUnity has introduced CHFAU, a Swiss franc-denominated stablecoin aimed at institutional players, marking another milestone in Europe’s regulated digital asset expansion under MiCA.
- AllUnity launched CHFAU, a MiCA-compliant Swiss franc stablecoin.
- Backers include DWS, Flow Traders, and Galaxy Digital.
- The token operates under a BaFin EMI license with 100% CHF reserve backing.
- Access is currently limited to institutional and professional investors.
- CHFAU expands AllUnity’s regulated stablecoin portfolio following EURAU.
The token went live on February 26, 2026, and is backed by a consortium that includes DWS, Flow Traders, and Galaxy Digital. CHFAU is pegged 1:1 to the Swiss franc and structured to comply fully with the EU’s Markets in Crypto-Assets Regulation (MiCA), positioning it as a regulated settlement asset for cross-border financial activity inside the European Union.
Launch Focused on Institutional Use
Unlike many retail-oriented stablecoins that target everyday payments or DeFi users, CHFAU is initially restricted to institutional and professional investors through the AllUnity Mint Platform. The rollout reflects a deliberate strategy to prioritize corporates, asset managers, and trading firms seeking programmable liquidity without stepping outside the EU’s regulatory perimeter.
AllUnity says the token is designed to facilitate cross-border payments, real-time settlement, and treasury optimization. For multinational companies operating across euro and non-euro jurisdictions, a compliant CHF-denominated digital instrument offers an alternative to traditional correspondent banking channels, potentially reducing friction and settlement delays.
Built on Ethereum With Multi-Chain Plans
From a technical standpoint, CHFAU launches as an ERC-20 token on the Ethereum network. This ensures compatibility with existing custody infrastructure, smart contract frameworks, and institutional-grade digital asset platforms already operating within the Ethereum ecosystem.
By starting on Ethereum, AllUnity leverages deep liquidity, mature tooling, and broad integration across exchanges and custodians. The company has also confirmed that expansion to additional blockchain networks is planned later in 2026, a move that could improve interoperability and widen its addressable institutional base.
Regulatory Structure and Reserve Backing
CHFAU is issued under an E-Money Institution license granted by Germany’s financial regulator, BaFin, in July 2025. Operating within this framework means the stablecoin must adhere to strict requirements regarding capital adequacy, safeguarding of client funds, and transparency.
According to AllUnity, the token is fully backed by segregated Swiss franc reserves held at a 100% ratio. This structure is intended to minimize counterparty risk and align with the reserve standards mandated under MiCA, reinforcing its positioning as a compliance-first product for risk-conscious institutions.
Second Regulated Stablecoin in Portfolio
CHFAU represents the second regulated stablecoin from AllUnity, following the launch of EURAU, its euro-backed token introduced in July 2025. Together, the two products form the foundation of a broader strategy to build a suite of fully compliant European stablecoins tailored to institutional use cases.
While other Swiss franc-denominated tokens are already active in the market – including Frankencoin (ZCHF) and VNX Swiss Franc (VCHF) – AllUnity maintains that CHFAU distinguishes itself as the first CHF stablecoin designed to meet full MiCA requirements. This alignment could enhance its usability across EU-regulated financial entities that require strict legal clarity.
Currency Shifts Drive Institutional Demand
The launch follows a year marked by currency volatility and shifting reserve preferences. During 2025, the US dollar weakened significantly against major currencies such as the euro, reportedly losing around 20% of its value. That decline intensified conversations among European corporates about diversification away from exclusive reliance on dollar-based digital instruments.
By anchoring CHFAU to the Swiss franc – a currency traditionally associated with monetary stability – AllUnity appears to be responding directly to institutional demand for alternatives within a regulated European framework. As stablecoin markets mature under MiCA, products like CHFAU may signal a broader transition toward regionally diversified, compliance-driven digital settlement assets.
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Source: https://coindoo.com/allunity-launches-mica-compliant-swiss-franc-stablecoin-for-institutions/