The VNX Swiss franc (VCHF) is a stablecoin that tracks the price of Switzerland’s national currency and is backed by tokenized gold.
Stablecoins have become vital assets for cryptocurrency’s casual users and superusers alike—and for everyone in between. They help traders hedge against the volatile cryptocurrency market, allow for the exchange of fiat equivalents in the digital world, and are useful as trading partners to coins like BTC and ETH.
VCHF is issued by the Liechtenstein-based company VNX, which launched as an exchange for fundraising/private equity but evolved into a broker of real-world assets. Companies like VNX have capitalized on the market’s demand for these assets, issuing their own tokenized fiat stablecoins linked to the US dollar, the euro, and other currencies. One such token is VCHF (a digital Swiss franc), which VNX calls a “fiat referencing token” and is backed by the company’s own digital gold asset.
More information about VNX and its other products can be found in the article What is VNX euro? (VEUR). As VEUR and VCHF were developed with a similar design, all aspects of VEUR are applicable to VCHF—except for the pegged (or “referencing”) fiat currency.
How does VNX Swiss franc work?
Like VEUR, VCHF is a “fiat referencing token” (FRT), an alternative model for tokenization that is intended to act like other stablecoins (i.e., maintain a price consistent with its pegged asset—in this case, the Swiss franc). Briefly, FRTs are backed by VNX’s digital gold (VNXAU), which is further backed by physical gold held in reserve.
How is the VCHF token used?
New VCHF can only be issued through the VNX platform by registered customers by depositing an equivalent value of assets. However, anyone can use VCHF if they obtain it through other sources like decentralized exchanges or peer-to-peer transactions.
Conclusion
VCHF is a stablecoin that tracks the price of the Swiss franc.
The company that issues VCHF, called VNX, is based in Lichtenstein and also issues VEUR, a fiat-referencing token (FRT) with the same design as VCHF that follows the euro.
VCHF is backed by VNX’s digital gold token, VNXAU, which is backed by physical gold held in reserve.