Smart Valor tackles cryptocurrency volatility problem

Cryptoasset trading platform Smart Valor plans to launch a new cryptocurrency pegged to the Swiss franc. The CHFt coin will join a growing list of so-called ‘stable coins’ designed to dampen the huge price swings of cryptocurrencies, such as bitcoin, which limits their everyday use.

Smart Valor said on Monday that it is in talks with Swiss banks and cryptocurrency exchanges to issue CHFt. Having a network of financial institutions pumping out a supply of the coins will provide insurance in case one of them shuts down, the Zug-based firm said.

The company’s platform allows people to trade a wide range of financial assets that have been digitally tokenised. The purpose of this structure is to “democratise” finance by making it possible to trade instruments without the need to go through the established…