Dateline: Nov 6, 2025 — Switzerland’s carefully managed pivot into digital money and identity gathered pace today, with fresh commentary from the Financial Times amplifying the country’s regulatory push on stablecoins while the payments champion TWINT advances plans to integrate CHF‑backed tokens and the national e‑ID. In parallel, a resurgent Swiss franc is reshaping debt markets, handing bond issuers unusually attractive funding windows in francs. [1]
What’s new today
- Policy debate heats up: An FT Markets Insight argues Switzerland is “crossing the crypto Rubicon,” crystallizing a debate that began when the Federal Council opened a consultation on a new, comprehensive framework for stablecoins and crypto services in late October. The consultation includes draft licensing categories that would fold stablecoin issuance into supervised finance. (More on the proposal below.) [2]
- Company momentum: TWINT — used by more than 6 million people in Switzerland — has started the process of opening its platform to “trusted” CHF stablecoins, tokenised deposits and the forthcoming state e‑ID wallet, positioning itself as the everyday interface for digital money and identity. Though announced on Oct 28, the story continues to surface in today’s coverage as a key proof point of market readiness. [3]
- Debt‑market angle: As investors crowd into francs, long‑dated and even riskier CHF deals have found buyers. A recent leader in GlobalCapital links the franc’s surge (and its correlation with gold and stablecoins) to a sweet spot for issuers stretching maturities and funding cheaply. [4]
The regulatory backbone: Switzerland’s stablecoin blueprint
On Oct 22, 2025, the Federal Council launched a public consultation to update the Financial Institutions Act (FinIA) and related laws. The plan would retire the 2018 “fintech licence” and introduce two new licences:
- Payment instrument institutions — permitted to take non‑interest‑bearing customer funds, with stronger consumer safeguards (e.g., segregation of client money). Critically, only these entities could issue “stable crypto‑based payment instruments” (i.e., CHF‑pegged stablecoins issued in Switzerland with a redemption right).
- Crypto‑institutions — supervised providers offering services around “cryptoassets for trading” (including stablecoins issued abroad), with rules largely modelled on securities‑firm oversight.
The consultation runs until Feb 6, 2026, after which the Federal Council aims to send a bill to Parliament in the second half of 2026. [5]
Why it matters: The proposal brings stablecoin issuance squarely under Swiss financial supervision, updates AML rules to international standards, and makes room for market infrastructure (e.g., trading venues limited to cryptoassets) without blurring prudential lines. It also harmonises with Swiss voters’ narrow approval of a state‑run e‑ID on Sept 28, 2025, setting up a coherent national stack for digital identity + digital francs in everyday transactions. [6]
TWINT’s move: from payments app to digital‑money hub
TWINT says it has “started the dialogue” to open its platform to regulated CHF stablecoins, tokenised deposits and the Swiss e‑ID, working with authorities and industry to build practical, consumer‑grade use cases. For users, that could mean paying in shops, online or P2P with a franc‑denominated digital instrument that retains the speed of crypto rails and the assurance of Swiss oversight — all inside an app millions already use. [7]
Coverage over the past week underscores momentum: fintech outlets highlight that TWINT’s step dovetails with Bern’s consultation and the e‑ID green light — an alignment that reduces fragmentation and could accelerate trusted digital‑money adoption in retail payments. [8]
Markets watch: a strong franc is a headache for exporters — and a gift to issuers
Switzerland’s safe‑haven franc has been on a tear this year, and commentary out of the CHF bond market makes two things clear:
- Currency dynamics: The franc’s strength — aided by haven flows and even a perceived linkage to gold and stablecoins — is unwelcome for exporters and complicates life for the Swiss National Bank. Yet for borrowers in CHF, it’s creating deep pockets of demand at the long end as investors hunt yield. [9]
- Issuance sweet spots: Recent weeks saw trades that would have seemed unlikely in a higher‑rate world:
- Canton of Geneva pushed to 40 years, paying <1%;
- Austria issued long‑dated Swissie bonds;
- IDA (the World Bank’s fund for the poorest countries) landed a 12‑year;
- Hypo Vorarlberg printed a SFr50m AT1 — the first foreign AT1 in CHF since the Credit Suisse collapse — signalling that investor risk appetite is broadening. [10]
Rate backdrop: Switzerland’s policy rate is at 0% after a June cut, and parts of the government curve have dipped below zero again — a throwback to the negative‑rate era that helps explain the reach for duration and subordinated risk. [11]
Today’s Swiss debt‑market tidbit:DocMorris AG opened a tender offer for its convertible bonds due 2026 (ISIN CH1210198169) at 103.50% of par, with the offer period set to expire Nov 12 and settlement expected Nov 17. While not a new issue, it’s another sign of active liability management in Switzerland’s capital markets. [12]
The bigger picture: toward a “full‑stack” digital Switzerland
Put together, policy + identity + payments form a credible path for Switzerland to scale digital money safely:
- Regulators are designing permissioned rails for franc‑pegged tokens with clear licensing and AML obligations. [13]
- Voters have authorised a state e‑ID, enabling secure, privacy‑conserving authentication for payments, age checks and more. [14]
- Industry (TWINT) is preparing to meet consumers where they already are, knitting identity and money into a single user experience. [15]
The near‑term tension is familiar: how to embrace innovation without inflaming the franc’s strength or importing crypto’s boom‑bust cycles. But if Switzerland succeeds, the payoff is a trusted franc‑denominated digital ecosystem — and, for capital markets, a deeper, more versatile CHF investor base.
What to watch next
- Consultation milestones: Stakeholder feedback on the FinIA amendments runs through Feb 6, 2026. Watch for signals on capital, redemption, disclosure and custody rules for CHF stablecoins. [16]
- TWINT pilots: Proof‑of‑concepts around merchant acceptance, P2P flows and e‑ID‑linked payments could appear as regulators firm up the rulebook. [17]
- SNB & the curve: If franc strength persists and short‑end yields remain compressed or negative, expect more long‑dated and capital trades in CHF — from Swiss public‑sector names to selective foreign banks. [18]
Sources & further reading
- FT Markets Insight on Switzerland “crossing the crypto Rubicon” (Nov 6, 2025). [19]
- Federal Department of Finance / SIF Fact Sheet on the stablecoin consultation (Oct 22, 2025). [20]
- TWINT press release announcing plans to open to stablecoins & e‑ID (Oct 28, 2025). [21]
- GlobalCapital Leader on the strong franc and CHF bond opportunities (Oct 31, 2025). [22]
- SRF and SWI swissinfo on the e‑ID referendum result (Sept 28, 2025). [23]
- DocMorris tender offer announcement for 2026 convertibles (Nov 6, 2025). [24]
Editor’s note (SEO): Keywords to include or tag — Switzerland stablecoin regulation, TWINT CHF stablecoin, Swiss e‑ID vote, FINMA crypto rules, Swiss franc bond market, Canton of Geneva 40‑year bond, Hypo Vorarlberg AT1, IDA CHF bond, SNB rates.
References
1. www.ft.com, 2. www.ft.com, 3. www.twint.ch, 4. www.globalcapital.com, 5. www.sif.admin.ch, 6. www.srf.ch, 7. www.twint.ch, 8. fintechnews.ch, 9. www.globalcapital.com, 10. www.globalcapital.com, 11. www.ft.com, 12. www.ad-hoc-news.de, 13. www.sif.admin.ch, 14. www.srf.ch, 15. www.twint.ch, 16. www.sif.admin.ch, 17. www.twint.ch, 18. www.globalcapital.com, 19. www.ft.com, 20. www.sif.admin.ch, 21. www.twint.ch, 22. www.globalcapital.com, 23. www.srf.ch, 24. www.ad-hoc-news.de
