Swiss-based blockchain startup Smart Valor, which operates a marketplace for security tokens and tokenized alternative assets, announced on Monday it had initiated a project that would make it the first digital asset platform supporting a stablecoin backed by the Swiss franc (CHF).
Smart Valor is providing its blockchain infrastructure to e-money and banking companies with the necessary license to issue a tokenized franc (CHFt). A stablecoin represents a cryptocurrency or blockchain-based token pegged to a fiat currency and, as a result, exhibits insignificant volatility. Some examples of stablecoins are Tether’s USDT and USDC, which was recently launched by Circle.
Besides offering its technical know-how, Smart Valor plans to issue CHFt by itself, relying on its regulatory experience. The company has created a subsidiary in Liechtenstein and is waiting for a banking license from the Financial Market Authority (FMA) of the country.
Smart Valor CEO Olga Feldmeier commented:
“By building a network of independent issuers of the Swiss Franc stable coin, we ensure that failure of a single issuer does not impose the collapse of the coin, as the CHFt will be accepted by any institution of the network. This massively reduces the counterparty risk connected to a possible failure of a single banking institution.”
Smart Valor is now negotiating with crypto exchanges, banking groups, and one of the Big Four professional services firms for the new stablecoin project. It is also relying on its membership in the Enterprise Ethereum Alliance (EEA). The Swiss startup revealed that it would work with Adhara, another EEA member, to ensure compliance with the standards and promote the interoperability of its stablecoin.
By partnering with Smart Valor, banks will be able to provide their clients with digital wallets on the Smart Valor platform. With the crypto wallet, customers can use CHFt-based instant credit while the fiat equivalent can be held as collateral by issuing banks. This will help clients get easy access to crypto exchanges worldwide.
“The formation of global liquidity pools will be significantly supported by such services, which we are happy to pioneer in Europe. The advantage of our solution is that Swiss Franc is one of the few truly stable national currencies which received the status of safe haven currency. Even today’s dominant reserve currency USD lost around 70% of value in relation to Swiss Franc during the last 50 years,” Feldmeier noted.
As reported on Monday, Smart Valor has become a partner in SpaceFund, a venture capital outfit with plans to tokenize its fund.