Sygnum Bank Enables First Stablecoin E-Commerce Payment

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Sygnum (Courtesy: Twitter)
Sygnum (Courtesy: Twitter)

Sygnum bank on Thursday, in association with Coinify and Galaxus, announced the world’s first first e-commerce transaction using a bank-issued stablecoin.

The Sygnum Digital Swiss Franc (DCHF), pegged 1:1 with the Swiss Franc, eliminates the need for card systems, reduces costs and fraud, and processes transactions in real-time.

This seamless connection between the digital and traditional economies has the potential to revolutionise the USD 3.5 trillion e-commerce industry and forge direct connections between consumers and online retailers.

n a world first, Sygnum’s Digital Swiss Franc (DCHF) stablecoin has been successfully used for an e-commerce payment transaction with leading Swiss online retailer, Galaxus. The transaction was enabled by the digital currency platform provider, Coinify.

Over USD 3.5 trillion per year, including USD 11 billion in Switzerland, pass through a chain of payment service providers and card systems during e-commerce transactions. The multiple processes required to approve and facilitate payments provides opportunities for fraud and increase online retailers’ transaction costs and chargebacks.

The value of Sygnum’s DCHF is pegged 1:1 to the Swiss Franc. When used for e-commerce payments, no intermediaries are involved, and the transactions happen in real-time with stable values. This reduces costs for online retailers by eliminating card systems and protecting against fraud, as well as simplifying and speeding the customer purchase experience. This seamless connection between the digital and traditional economies has the potential to revolutionise the e-commerce industry and forge direct connections between consumers and online retailers.

“With the DCHF and other digital currencies, the future of money is going back to its roots; exchanged between two parties, instantly and simply,” said Mark Højgaard, Coinify’s CEO.