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Cryptoprowl.com / AllUnity, a joint venture between DWS, Galaxy, and Flow Traders, has launched a new stablecoin that is pegged to the Swiss franc currency.

The new stablecoin, called CHFAU, is backed 1:1 by Swiss franc reserves. The launch comes as the Swiss franc replaces the U.S. dollar and Japanese yen as a safe haven currency.

Stablecoins are cryptocurrencies pegged to an underlying asset, typically the U.S. dollar or price of gold.

However, investors internationally have been moving away from the U.S. dollar amid rising fiscal deficits and political volatility.

AllUnity's new stablecoin runs on the Ethereum (CRYPTO: $ETH ) blockchain as an ERC-20 token, with plans to expand to other networks later this year.

Analysts say CHFAU is a sign of growing investor demand for stablecoins pegged to currencies beyond the U.S. dollar.

Last year, AllUnity debuted a stablecoin that is pegged to the Euro currency.

The global market for stablecoins has surged since 2020, reaching $310 billion U.S. at the end of 2025.

The Swiss franc is gaining in popularity as investors worldwide see it as a better safe haven currency than either the U.S. dollar or Japanese yen.

A safe haven currency is a stable, liquid currency that investors hold during periods of economic uncertainty, political turmoil, and market volatility.

Investment bank Morgan Stanley (NYSE: $MS ) has compared the Swiss franc to gold, calling for a 17% appreciation against the U.S. dollar.

Goldman Sachs (NYSE: $GS ) and Bank of America (NYSE: $BAC ) also favour the Swiss franc as a safe haven currency amid continued market uncertainty.