Sygnum Bank, Coinify and Galaxus announce the world’s 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.
In 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,” says Mark Højgaard, Coinify’s CEO. “This speaks volumes about the potential of trusted, price-stable digital currencies in the e-commerce space”
“Galaxus strengthened its position as an e-commerce pioneer by accepting digital currencies as a means of payment in early 2019,”
comments Thomas Fugmann, Galaxus’ CFO.
“Enabling our customers in Switzerland and Liechtenstein to make payments on our online store with stable digital currencies like the DCHF further enhances their convenience,”
he also says.
Unlike unaudited stablecoins issuers, Sygnum is a regulated bank that holds as collateral one Swiss Franc in the Swiss National Bank for every DCHF it generates in its client accounts. DCHF also facilitates Sygnum’s innovative tokenization solution that generates digital versions of assets like company shares and real-estate on the blockchain that can be securely traded, paid for, and delivered instantly.
“This transaction is a further proof-point of the value of Sygnum’s DCHF and its potential to drive digital transformation in major global industries like e-commerce and payments,”
says Martin Burgherr, Sygnum Bank’s Chief Client Officer.
“We continue to innovate and foster partnerships such as this to accelerate the development of the global digital asset economy”