Anchored Coins ACHF
Anchored Coins CHF (ACHF) is a fiat-collateralized stablecoin pegged 1:1 to the Swiss Franc (CHF). Issued by the Swiss-based company Anchored Coins AG, ACHF is designed to provide a stable digital asset that bridges traditional financial systems with blockchain technology. The token is fully backed by an equivalent amount of Swiss Francs held in reserve at Swiss banks licensed by the Swiss Financial Market Supervisory Authority (FINMA). ACHF is natively available on multiple blockchains, including Ethereum and BNB Chain. [1] [2]
Overview
Anchored Coins CHF was created to offer a stable and transparent digital representation of the Swiss Franc within the cryptocurrency ecosystem, mitigating the volatility inherent in other digital assets. The issuer, Anchored Coins AG, is a Swiss stock corporation (Aktiengesellschaft) headquartered in Zug, Switzerland, a region known as "Crypto Valley" for its progressive regulatory environment. [3] [4]
The project operates under Swiss law, where ACHF is classified as a "payment token" and issued as a ledger-based security in accordance with the Swiss Code of Obligations. This legal framework provides clarity on the rights of token holders. Anchored Coins AG operates as a Swiss financial intermediary and is a member of the Financial Services Standards Association (VQF), a self-regulatory organization (SRO) officially recognized by FINMA, which subjects the company to Swiss anti-money laundering (AML) regulations. [2] [4]
As a digital representation of an off-chain asset, ACHF is also categorized as a Real-World Asset (RWA). Its primary use cases include facilitating payments and remittances, hedging against market volatility, trading on digital asset exchanges, and serving as collateral in Decentralized Finance (DeFi) protocols. The project's structure includes a unique default guarantee from partner banks designed to protect token holders in the event of the issuer's insolvency. [5] [4]
History
Anchored Coins AG was founded in 2022 in Zug, Switzerland, by a group of entrepreneurs with backgrounds in financial services and digital assets. The company is notably backed by Singaporean investors, with Calvin Cheng identified as the founder. [4] [3]
In early 2023, the company obtained membership in the VQF, formalizing its status as a financial intermediary under Swiss AML laws. On August 16, 2023, Anchored Coins AG officially launched its two stablecoins: ACHF, pegged to the Swiss Franc, and AEUR, pegged to the Euro. The initial rollout was targeted at approximately 10 institutional partners. This was followed by a broader public announcement on December 5, 2023, which coincided with the tokens being listed on several major cryptocurrency exchanges. [3] [1]
By early 2024, the market capitalization of ACHF had surpassed 5 million CHF, reflecting its adoption in the market. In June 2024, FINMA initiated bankruptcy proceedings against FlowBank SA, which was one of Anchored Coins' banking partners. This event led Anchored Coins to temporarily halt issuance and redemption for its AEUR stablecoin. In response, the company restructured its AEUR collateral by moving all reserves to Swissquote Bank SA. Subsequently, due to the European Union's Markets in Crypto-Assets (MiCA) regulation requiring EU-based licensure for Euro-denominated stablecoins, Anchored Coins announced it would cease issuing new AEUR and plan an orderly withdrawal from the stablecoin business for that specific token. Operations for ACHF were not directly cited in the halt announcement. [2] [1]
Key People and Entities
- Anchored Coins AG: The issuing entity is a Swiss public limited company (AG) with company registration number CHE-434.703.403, based in Zug, Switzerland. [1]
- Calvin Cheng: The founder of Anchored Coins AG. Cheng is a Singaporean investor, a former Nominated Member of Parliament in Singapore, and chairman of Mason Financial Holdings. He cited regulatory uncertainty in the United States as a key motivation for launching stablecoins pegged to the Swiss Franc and Euro in Europe. In a statement, Cheng said: "There is a clear need for stablecoins to be pegged to currencies other than the United States dollar, given the regulatory uncertainty in the US. This is the right time and right place to launch highly compliant stablecoins in two other well-regarded global currencies – the Swiss franc and the euro." [3] [6]
- Banking Partners: The whitepaper and other materials name FlowBank SA and Swissquote Bank SA as banking and guarantee partners. The fiat reserves are held in FINMA-licensed Swiss banks. [4]
- Auditors: The project utilizes multiple auditors for different purposes. The smart contracts were audited by PeckShield. For reserve attestations, PricewaterhouseCoopers (PwC) Switzerland was named as the intended provider at launch. The company's statutory auditor is Prescient Assurance LLC. Some exchanges have also referenced Presight Solutions as a reserve auditor. [4] [3] [7]
Technical Architecture and Mechanism
Reserve and Backing Mechanism
ACHF operates on a fully fiat-collateralized model. For every ACHF token in circulation, one Swiss Franc is held in a segregated reserve account, ensuring a stable 1:1 value peg. The reserves consist entirely of CHF cash deposits and are kept separate from the company's operational funds. These reserve accounts are maintained with Swiss banks that are licensed and supervised by FINMA, with FlowBank SA being one of the specified institutions. [2] [1]
Bank Default Guarantee
A distinctive feature of Anchored Coins' stablecoins is a default guarantee provided by its partner banks, FlowBank SA and Swissquote Bank SA. This mechanism is designed to protect token holders in the specific event that bankruptcy proceedings are irrevocably opened against the issuer, Anchored Coins AG. [4]
Under the terms of the guarantee, eligible ACHF holders can file a claim directly against the guaranteeing banks. The claims process involves:
- Submitting a formal "Payment Request" within 360 calendar days of the public announcement of the issuer's bankruptcy.
- Proving ownership of the ACHF tokens and passing the bank's AML and sanctions compliance checks.
- Transferring the ACHF tokens to a specified address (e.g., a burn address) as instructed by the guarantor.
Claims are paid out in fiat CHF on a first-come, first-served basis, up to the total guaranteed amount. The banks may charge a fee for processing the request and conducting compliance checks. [4]
Transparency and Audits
Anchored Coins commits to transparency through regular, publicly available attestation reports from independent third-party auditors. At launch, the company announced it would engage PricewaterhouseCoopers (PwC) Switzerland to perform these monthly attestations to verify that the fiat reserves fully back the circulating supply of ACHF. The company's website also provides data on the circulating supply and the value of reserves held. In addition to reserve audits, the ACHF smart contracts were audited by the blockchain security firm PeckShield to identify and address potential vulnerabilities. [3] [4]
Blockchain Integration
ACHF was launched natively on two blockchains, with plans for future expansion based on market demand and technical assessment. The token adheres to the most common standards on these networks. [1]
The official smart contract address for ACHF on both Ethereum and BNB Chain is 0x653aaB62056B92641116D63927DE6141D780e596. [1] [2]
Smart Contract Functions
The ACHF smart contracts include several administrative functions controlled by the issuer, which are common for centrally-issued stablecoins and intended for regulatory compliance. These functions include:
- Mint/Burn: Allows the issuer to create new tokens upon receipt of fiat deposits and destroy tokens upon redemption.
- Pause/Unpause: Enables the halting of all token transfers in exceptional circumstances, such as a major security incident, a hard fork, or by order of a competent authority.
- Freeze/Unfreeze: Allows for the freezing of tokens at a specific address if compelled by a court order or other legal requirement. [4]
Ecosystem and Adoption
Minting and Redemption
The creation (minting) and destruction (redemption) of ACHF are permissioned processes managed directly by Anchored Coins AG for verified clients. The onboarding process requires full identity verification to comply with KYC and AML regulations. The platform's rollout was planned in two stages:
- Stage 1 (Launch): Direct minting was made available primarily to corporate clients, while redemptions were available to any holder meeting the minimum threshold.
- Stage 2 (Planned): Services are intended to be expanded to a wider group of individual users, with plans to lower minimum thresholds and fees over time.
The initial minimum threshold for direct redemption from the issuer was set at CHF 250,000. For sizable redemptions, users are requested to contact the company directly. [1] [4]
Fees
There are several types of fees associated with using ACHF:
- Issuance and Redemption Fees: Anchored Coins AG charges fees for direct minting and redemption services. A fee of up to 5% may be applied, especially for redemptions that fall below the standard minimum threshold.
- Gas Fees: As with any blockchain transaction, users are responsible for paying network fees (gas) to validators or miners for processing their on-chain transfers.
- Exchange Fees: When buying, selling, or trading ACHF on centralized or decentralized exchanges, users are subject to the fee structures of those specific platforms. [4]
Use Cases and Market Availability
ACHF is designed for a variety of applications within the digital asset economy, including as a stable store of value, a hedge against volatility, a medium for payments and remittances, and as collateral or liquidity in DeFi protocols. The token is available for trading on several centralized exchanges (CEXs) and decentralized exchanges (DEXs). Notable CEX listings include Bybit, Phemex, and Bitget, while DEX liquidity is present on platforms like Uniswap. [6] [7] [4]
Partnerships
Shortly after its launch, Anchored Coins announced a partnership with DCS Card Centre (formerly Diners Club Singapore). The collaboration allows DCS customers to use ACHF and AEUR as a form of collateral for their credit limits. Karen Low, CEO of DCS Card Centre, stated that "...stablecoins are crucial in bridging digital assets to traditional finance and the company aims to lead the charge on connecting Web2 and Web3 with integrated payment experiences." This partnership exemplifies ACHF's goal of integrating with traditional financial services. [3]
