Future Scenario: Pay with Sygnum’s Stablecoin when Ordering Online on Galaxus/Digitecby Company Announcement August 27, 2020
Sygnum Bank, Coinify and Galaxus announced their successful e-commerce transaction using a bank-issued stablecoin.
Sygnum’s DCHF stablecoin has been successfully used for an e-commerce payment transaction with Swiss online retailer, Galaxus. The transaction was enabled by the digital currency platform provider, Coinify.
The Sygnum DCHF, pegged 1:1 with the Swiss Franc, is said to eliminate the need for card systems, reduce cost and fraud, and processes transactions in real-time.
This connection between the digital and traditional economies has the potential to revolutionise the US$3.5 trillion e-commerce industry and forge direct connections between consumers and online retailers.
Over US$3.5 trillion per year, including US$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.
“With the DCHF and other digital currencies, the future of money is going back to its roots; exchanged between two parties, instantly and simply. This speaks volumes about the potential of trusted, price-stable digital currencies in the e-commerce space”,
said Mark Højgaard, Coinify’s CEO.
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 tokenisation 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. We continue to innovate and foster partnerships such as this to accelerate the development of the global digital asset economy”.
says Martin Burgherr, Sygnum Bank’s Chief Client Officer.