Each layer depends on every layer beneath it. Remove one and the stack collapses.
Foundation ↑ Legal entity · Top ↓ Ongoing supervision
- 1Legal & licensing layer
The authorised entity that may legally issue an e-money / payment / asset-referenced token in the target jurisdiction.
- •Licensed issuer (EMI / MiCA EMT or ART authorisation, US state trust or OCC-supervised issuer under GENIUS, MAS MPI, HKMA stablecoin licensee)
- •White paper / disclosure document and regulator notification
- •Group structure, fit-and-proper directors, qualifying-holder approvals
- •Cross-border passporting or local subsidiary strategy
Examples: MiCA EMT issuer (EU EMI), New York limited-purpose trust, Singapore MPI, Hong Kong licensed stablecoin issuer.
Swiss regulatory anchors
- FINMA
- Authorisation decision and ongoing prudential supervision; pre-application meetings, fit-and-proper assessment of board, management and qualified shareholders.
- FinIG
- FinIG art. 1a / 5 ff. defines licence categories (fintech, securities firm, bank). A CHF stablecoin issuer typically targets a fintech (art. 1b BankG) or full banking licence depending on deposit treatment.
- FINIA / FinIO
- FINIA (English of FinIG) and the Financial Institutions Ordinance (FinIO) set minimum capital, organisational and risk-management requirements that scale with the licence category chosen.
- 2Reserve & treasury layer
Where the assets backing every token in circulation are held, invested, and segregated from the issuer's own balance sheet.
- •1:1 backing policy and eligible reserve assets (cash, central-bank deposits, short-dated sovereign bills, qualifying MMFs)
- •Segregated client-money / trust accounts at credit institutions
- •Investment mandate, liquidity buckets, daily NAV reconciliation
- •Independent monthly attestation and annual audit
Examples: Tri-party custody at G-SIB banks, BNY Mellon / State Street reserve programs, on-shore MMFs.
Swiss regulatory anchors
- FINMA
- FINMA Guidance 04/2024 on stablecoins: reserves must be fully segregated, bankruptcy-remote and held with a Swiss bank or central bank; quality and concentration limits are supervised on an ongoing basis.
- FinIG
- FinIG treats reserve assets as client assets — must be ring-fenced from the issuer's own balance sheet under art. 16 BankG / art. 19 FinIG, with depositor-protection implications.
- FINIA / FinIO
- Under FINIA / FinIO the issuer needs a documented investment and liquidity policy approved by the board, plus daily NAV reconciliation evidenced to the auditor.
- 3Custody & key-management layer
Secure custody of cryptographic keys controlling mint / burn authority and treasury wallets.
- •HSM-backed or MPC key custody (FIPS 140-2/3, SOC 2)
- •Quorum policies, role separation, hardware ceremony procedures
- •Hot / warm / cold wallet tiering with withdrawal limits
- •Disaster recovery and key-rotation playbooks
Examples: Fireblocks, Copper, BitGo Trust, Anchorage Digital, in-house HSM clusters.
Swiss regulatory anchors
- FINMA
- FINMA Circ. 2023/1 'Operational risks and resilience – banks' applies to key custody: HSM controls, dual control, recovery testing and incident reporting to FINMA within 24h of a material event.
- FinIG
- FinIG art. 9 requires adequate organisation, internal controls and risk management proportionate to the activity — explicitly covers technology and cyber risk for licensed institutions.
- FINIA / FinIO
- FINIA / FinIO obliges the issuer to evidence segregation of duties between mint-authority keys and treasury operations, documented in the licence application's IKS (internal control system).
- 4Smart-contract & protocol layer
The on-chain token contracts and supporting protocol logic that mint, burn, freeze, and upgrade the stablecoin.
- •ERC-20 / SPL / native token with pause, blocklist and forced-transfer capability
- •Upgrade pattern (proxy, timelock, multisig governance)
- •Cross-chain bridging or canonical-mint model (CCTP-style)
- •Audits, formal verification, monitored bug-bounty program
Examples: Centre / USDC FiatToken, Circle CCTP, Paxos PAXG contract, BUSD-style admin controls.
Swiss regulatory anchors
- FINMA
- FINMA classifies the token (payment / utility / asset / stablecoin) per its ICO and stablecoin guidelines; freeze / blocklist capability is expected so that AMLA and sanctions obligations can be enforced on-chain.
- FinIG
- Where the token qualifies as a security under FinIG art. 3, additional securities-firm duties apply (record-keeping, best execution at primary issuance).
- FINIA / FinIO
- FINIA's technology-neutral wording lets DLT-based ledgers satisfy book-entry requirements when paired with the DLT-Act amendments to the Code of Obligations and FMIA.
- 5Mint / burn & banking-rails layer
The operational pipe that converts incoming fiat into freshly minted tokens and burns tokens for redemptions.
- •Fiat on/off-ramp accounts (SEPA, Fedwire, FPS, FAST)
- •Mint / redemption API with eligibility checks and limits
- •Settlement reconciliation between bank ledger and on-chain supply
- •Same-day or T+1 redemption SLA at par
Examples: Direct mint via primary distributors only, with KYB'd institutional counterparties.
Swiss regulatory anchors
- FINMA
- Mint / redeem flows are deposit-taking activity — FINMA requires either a banking licence, a fintech licence (deposits ≤ CHF 100m, no interest) or a default-guarantee from a Swiss bank under FINMA Guidance 04/2024.
- FinIG
- If redemption is at par on demand, the liability is treated as a deposit under art. 5 BankG; FinIG-licensed securities firms cannot accept such deposits without an additional licence.
- FINIA / FinIO
- FINIA / FinIO require documented mint / burn procedures, four-eyes approval, and that settlement systems used (SIC, euroSIC, SEPA) are listed in the licence application.
- 6Distribution & market-infrastructure layer
How the token reaches end-users — exchanges, PSPs, wallets, market makers — and how secondary-market liquidity is maintained.
- •Primary distributor agreements (exchanges, OTC desks, PSPs)
- •Market-making and liquidity provisioning programs
- •Listing, integration and BD pipeline
- •Public proof-of-reserves dashboard
Examples: Tier-1 exchange listings, OTC desks, embedded payments in wallets and merchants.
Swiss regulatory anchors
- FINMA
- Distributors that hold customer tokens are themselves subject to FINMA — typically as banks, securities firms or DLT trading facilities under FMIA; PoR disclosures are reviewed during ongoing supervision.
- FinIG
- FinIG draws the line between issuer and distributor: secondary-market makers acting on own account in tokenised securities need a securities-firm licence (art. 41 FinIG).
- FINIA / FinIO
- Under FINIA / FinIO the issuer must keep an up-to-date list of authorised primary distributors and notify FINMA of material changes to the distribution model.
- 7Compliance, risk & reporting layer
The continuous controls that keep the issuer authorised: AML / sanctions, prudential reporting, and consumer protection.
- •KYC / KYB onboarding, ongoing screening, Travel Rule
- •Transaction monitoring, on-chain analytics, SAR filing
- •Sanctions freeze & blocklist operations
- •Regulatory reporting (own-funds, liquidity, complaints, incident notifications)
- •ICT / DORA-style operational resilience and audit trail
Examples: Chainalysis / Elliptic, Sumsub / Onfido KYC, internal MLRO, periodic regulatory filings.
Swiss regulatory anchors
- FINMA
- AMLA supervision via FINMA directly or an SRO; FINMA Circ. 2016/7 (video / online identification) and 2008/21 (operational risks) apply, plus annual prudential and audit reporting.
- FinIG
- FinIG art. 9 / 21 ff. require an independent risk-management and compliance function, MLRO, and an internal audit proportionate to the institution's size.
- FINIA / FinIO
- FINIA / FinIO mandate ongoing audits by a FINMA-licensed audit firm covering AMLA, prudential and IT controls; findings flow into the annual regulatory audit report submitted to FINMA.
One concrete vendor / regulatory pick per layer. Not an endorsement — a worked example to show how the pieces snap together.
| Layer | Pick | Why |
|---|---|---|
| Legal | Swiss AG + FINMA fintech / banking licence | DLT-Act ready, CHF-denominated issuer |
| Reserve | Segregated accounts at SNB-eligible Swiss bank | 100% CHF cash + short SNB bills |
| Custody | Metaco Harmonize + Ledger Enterprise HSM | MPC quorum, Swiss-hosted |
| Smart contract | ERC-20 on Ethereum + Polygon, CCTP-style canonical mint | Pausable, blocklist, timelock multisig |
| Mint / burn | SIC / SEPA rails via Sygnum or AMINA | T+0 institutional mint API |
| Distribution | Bitstamp, SDX, Swissquote, Fireblocks network | PoR dashboard updated hourly |
| Compliance | Chainalysis KYT + Sumsub KYC + internal MLRO | FINMA AMLA reporting, Travel Rule |
How a FINMA-supervised CHF stablecoin compounds: each turn of the wheel deepens reserves, distribution and trust.
- 1Institutional mint. PSPs, fintechs & banks deposit CHF, receive tokens at par
- 2Reserve grows. CHF parked at SNB-eligible bank + short Confederation bills
- 3Reserve yield. SNB policy rate + bill carry funds operations & rebates
- 4Distribution rebates. Volume rebates to exchanges, wallets & merchants
- 5Payments & settlement. On-chain CHF used for FX, payouts, tokenised-asset settlement on SDX
- 6Trust & circulation ↑. PoR + FINMA supervision attract more issuers and holders
This is a high-level architectural reference, not legal advice. Always confirm the precise requirements with counsel and the competent authority in your jurisdiction.