SMART VALOR, the world’s first fully compliant marketplace for tokenized alternative assets and security tokens, announced that it has launched the project to become the first digital assets platform enabling a Swiss Franc stable coin through partnerships with banks and e-money institutions.
In this approach, SMART VALOR acts as technology provider delivering the basic infrastructure to local emoney institutions and banks who hold required licenses for issuance of tokenized Swiss Franc, called CHFt.
Additionally, the company itself is planning to issue CHFt, leveraging its regulatory approach. SMART VALOR has established a subsidiary in neighboring Liechtenstein and has applied for a banking license to the financial supervisory authority in Liechtenstein (FMA).
“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,” says Olga Feldmeier, CEO of SMART VALOR.
SMART VALOR is currently in partnership discussions with banks, cryptocurrency exchanges and one of the big four audit firms. On the technical side, it leverages its membership in the Enterprise Ethereum Alliance (EEA). The company said it will collaborate with Adhara to align on standards and promote interoperability of its CHFt solution. Adhara is also a member of the EEA and is specialized on delivering electronic money Distributed Ledger Technology (DLT) solutions for banks.
For banks the partnership with SMART VALOR will provide them with an infrastructure through which they can become involved in money flows between crypto and fiat world, working together with legitimate players which follow the same high standards of KYC/AML. Customers of the banks will be able to open crypto wallets on the SMART VALOR platform benefiting from instant credit of CHFt equivalent while the real Swiss Franc stays with the issuing banks as collateral. This will give the clients of banks instant access to global crypto exchanges around the world.
“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”, said Feldmeier.
“With the CHFt solution we introduce an infrastructure layer for crypto assets that will generate immense value for the digital assets ecosystem. The goal is to build up a network which will promote legitimacy and compliance in the world of digital assets”, she added.