The convergence of traditional finance and blockchain technology has yielded yet another development with former Singapore parliamentarian and investor Calvin Cheng's Swiss company, Anchored Coins AG, announcing on Wednesday the release of two sets of stablecoins: one pegged to the euro (AEUR) and one the Swiss franc (ACHF).
The ACHF and AEUR, natively issued on the Ethereum and BNB Chain networks, are backed 1:1 by Swiss Francs (CHF) and Euros (EUR), respectively. According to Cheng's company, both stablecoins are supported by bank guarantees provided by Swiss banks.
The company webpage states that by "offering stablecoins pegged to widely recognized fiat currencies, Anchored Coins provides a reliable means of transacting and storing value, mitigating the risks associated with price volatility."
However, the company explains that as of now, corporates with engagement or significant linkages to the digital assets area are eligible for direct minting and redemptions of its tokens as part of the initial stage of development.
In the second stage, the stablecoins will be made directly accessible to a larger range of individual users, the company further adds.
As of now, the precise dates for these phases have not yet been disclosed to the general public.
Cheng's business, which has previously gone by the name Damoon Techologies, received regulatory approval from Swiss authorities back in February, allowing it to advance its financial technologies in Switzerland with the assurance of its membership in the Financial Services Standard Association (VQF) of Switzerland.
The VQF, serving as the foremost Self-Regulatory Organisation (SRO) in the country, boasts official recognition from FINMA, Switzerland's financial services watchdog. This also means that Cheng's company is obliged to comply with Switzerland's strict anti-money laundering regulations.
After receiving regulatory approval, the digital asset company began constructing its platform for users to conduct crypto-to-fiat transactions and vice versa, as well as its digital asset custody service.
Calvin Cheng is a businessman and formerly an appointed Member of Parliament in Singapore and a Young Global Leader of the World Economic Forum.
His previous ventures into the world of cryptocurrencies include serving as the founding CEO of AlphaBit Crypto Exchange, as well as the senior partner of the Dragon Blockchain Investment Fund, which bought BTCC, the first cryptocurrency exchange ever.
Back in May, he established a non-fungible token (NFT) and fan token investment holding company in Dubai when the Dubai Virtual Asset Regulatory Authority (VARA) granted him a provisional Virtual Asset License.
Among Cheng's NFT projects is AmberX, a premium membership NFT that grants access to events held exclusively for members of the Amber Lounge, in addition to other perks.
The Singaporean businessman started his business career as the head of Asia Pacific division of Elite Model Management, the world's top modeling agency. He later founded his own modeling agency which then transformed to Lumina-Looque International, an integrated media and luxury events company in Singapore.