Institutional Clients Demand Unified Stablecoin Infrastructure

Swiss digital asset bank Sygnum is challenging the notion that one stablecoin will dominate the market, as institutional clients demand multiple tokenized cash instruments operating interchangeably on a single platform.

In an interview with CoinDesk, Thomas Eichenberger, chief strategy officer and deputy group CEO at Sygnum, said 'the demand from institutional clients is consistent: they are not waiting for any single instrument to prevail.'

Instead of focusing on a single winner, large asset managers and corporate treasuries are pushing for a unified infrastructure where stablecoins, tokenized deposits, and tokenized money market funds can be used interchangeably under one regulatory framework.

Sygnum has partnered with Swiss banking powerhouse UBS and PostFinance to test blockchain payments between institutions on Ethereum, and the company is working towards launching a joint Swiss franc-backed (CHF) stablecoin testing program.