In Project Helvetia, the SNB is exploring various approaches to the settlement of tokenised assets in central bank money. These include integrated settlement, in which central bank digital currency is issued on a DLT-based platform as part of a pilot project, as well as synchronised settlement, whereby tokenised assets are settled with traditional central bank money.

Project Helvetia, which will run until at least June 2027, is aimed at helping understand various use cases for the settlement of tokenised assets with a view to how the SNB can best continue to fulfil its mandate in the future. At the same time, the SNB is supporting private sector innovation.

As part of the Helvetia pilot, the SNB is providing central bank digital currency for financial institutions (wholesale CBDC) on the SIX Digital Exchange (SDX) settlement platform. The SDX platform is based on distributed ledger technology (DLT) and enables the issuance and transfer of tokenised assets, such as digital bonds. In this process, wholesale CBDC serves as a means of settlement. By issuing CBDC on the DLT-based SDX platform, the cash-side settlement of the assets can occur directly on the SDX platform. This is therefore known as integrated settlement, which financial participants can test as part of the Helvetia pilot.

Wholesale CBDC is a central bank digital currency issued exclusively to financial institutions by a central bank on a DLT-based platform. In the context of the Helvetia pilot, the SNB is issuing wholesale CBDC on the DLT-based settlement platform of SIX Digital Exchange (SDX). The project does not, however, constitute a commitment on the SNB's part to introduce wholesale CBDC on a permanent basis.

In both economic and legal terms, wholesale CBDC issued within the framework of the Helvetia pilot is a representation of sight deposits held at the SNB in a technically different form.

For the purposes of the Helvetia pilot, the SNB issues wholesale CBDC on the SIX Digital Exchange (SDX) platform, the regulated platform for digital assets operated by SIX Group, and defines the conditions for the settlement of wholesale CBDC transactions (e.g. settlement hours and use cases).

The pilot is a collaboration between public authorities and private companies. The SNB, SDX and a number of eligible financial institutions are involved. The following banks are currently eligible for wholesale CBDC: Aargauische Kantonalbank, Banque Cantonale Vaudoise, Basellandschaftliche Kantonalbank, Basler Kantonalbank, Commerzbank, Hypothekarbank Lenzburg, Raiffeisen Switzerland, UBS and Zürcher Kantonalbank.

No, the number of participants is not limited. There are, however, specific criteria for participation.

In order to participate, financial institutions must have a sight deposit account with the SNB, be admitted to the Swiss Interbank Clearing (SIC) payment system, and be members of SDX. To qualify as eligible holders of wholesale CBDC in the Helvetia pilot, financial institutions need to sign a contract with the SNB and successfully complete the Helvetia testing. SDX and the SNB are pleased to assist interested financial institutions during the admission process. The SNB's Helvetia team may be contacted via helvetia@snb.ch.

During the pilot, participating institutions may use wholesale CBDC to settle transactions and transfers that are supported by the SDX platform and permitted under the general terms and conditions applicable to the platform, with the exception of those transactions that are explicitly excluded by the SNB.

Participants can also propose new use cases and refine or extend existing use cases. SDX is the point of contact for all such initiatives via market-advisory-group@sdx.com.

With the RTGS link, the SNB explores the synchronised settlement of tokenised assets. Assets are settled on a DLT platform, while the cash side is settled in traditional central bank money on the established Swiss Interbank Clearing (SIC) payment system via its real-time gross settlement (RTGS) system. This requires a connection between the two platforms, known as an RTGS link, to ensure synchronicity.

The financial market infrastructure BX Digital (BXD) uses the RTGS link in a production environment. As part of Project Helvetia, the possibilities, limitations and potential improvements of the RTGS link for settling tokenised assets will be examined from a conceptual perspective. BXD's access to the SIC system is independent of its participation in Project Helvetia.