Switzerland’s largest online retailer Galaxus partnered with Coinify to make the first payment using the digital Swiss franc DCHF issued by Sygnum Bank.
Sygnum Bank, Coinify and Galaxus have announced the world’s first e-commerce transaction using the bank-issued Sygnum Digital Swiss Franc (DCHF) stablecoin pegged to the Swiss franc at a 1: 1 ratio.
DCHF eliminates the need for a bank card system, reduces costs and the likelihood of fraud, and processes transactions in real time, the companies note. The transaction was initiated by the cryptocurrency platform Coinify.
Using DCHF for e-commerce payments reduces costs for online retailers by eliminating credit card systems and protecting against fraud, and simplifying and accelerating the buying process for customers.
According to the companies, this link between the digital and traditional economies could revolutionize the e-commerce industry and create direct connections between consumers and online stores.
“With DCHF and other digital currencies, the future of money is returning to its roots. The exchange between the two parties is instant and easy, ”said Coinify CEO Mark Højgaard in a statement.
Galaxus CFO Thomas Fugmann stressed that enabling customers in Switzerland and Liechtenstein to make payments in an online store using stablecoins improves the user experience and improves their experience with Galaxus.
The regulated bank Sygnum holds one Swiss franc as collateral with the Swiss National Bank for each DCHF it generates in its clients’ accounts.
DCHF also supports Sygnum’s tokenization solution, which generates digital versions of blockchain assets, such as company and real estate shares, that can be safely sold, paid for, and delivered instantly. Sygnum’s Chief Accountant Martin Burgherr said:
“This deal is further proof of the value of DCHF Sygnum and its potential to drive digital transformation in major global industries such as e-commerce and payments. We continue to innovate and develop partnerships like this to accelerate the development of the global digital asset economy. ”
As a reminder, Sygnum Bank introduced the DCHF digital Swiss franc for settlements with securities in March this year.