Frankencoin Review 2026: Swiss Franc Stablecoin on Ethereum

Frankencoin is a stablecoin that tracks the Swiss franc. Its token, ZCHF, is described as over-collateralized and fully on-chain, and DefiLlama lists it as a CDP protocol on Ethereum with about 60 million dollars in TVL and a listing date of November 2023.

The homepage shows a money supply of roughly 34.6 million ZCHF against about 53.8 million ZCHF in collateral value. It says it has been deployed on 8 blockchains and calls itself the largest decentralized Swiss franc stablecoin. These are the project's own claims.

Beyond minting, the project promotes savings yield, payments at Spar stores, card and IBAN integrations, and a share token, FCS, that takes part in the equity reserve and governance.

Frankencoin lets users mint ZCHF by locking approved crypto collateral. The system is over-collateralized, so collateral value should exceed the ZCHF issued. If a position falls short, its collateral can be liquidated to protect the peg. The project describes itself as oracle-free, meaning it does not rely on a conventional price-feed oracle.

The equity reserve is the buffer. Holders of the share token, now FCS, which wraps the earlier FPS, take part in this reserve. It absorbs protocol income and also losses. Voting power builds over time and can be delegated.

ZCHF can then be held, saved in the protocol's savings module or used in DeFi apps such as Morpho and Curve. Partners link it to payments, cards and bank transfers.

The project does not publish a full fee schedule. The homepage advertises buying ZCHF at 0% fees, including bank transfer through Mt Pelerin, and notes Spar payments cost about two-thirds less than Twint or card payments. PrivCart, a merchant checkout partner, charges a flat 1% fee.

Borrowing rates, minting terms and savings yields are market-based and not listed publicly. Users would see them in the app's borrow and savings pages, plus normal Ethereum gas costs.

DefiLlama lists two audits for the protocol, but the project does not name the auditors or give findings. The system is non-custodial and relies on smart contracts, so bugs, liquidation failures or collateral price shocks are real risks. Holders of the FCS share token bear losses from the equity reserve.

The homepage says it is fully compliant with Swiss law and MiCAR. This is a self-description, and the project does not detail a licence or regulator. Partner services such as Mt Pelerin, described as a FINMA-regulated Swiss financial intermediary, have their own terms. No hacks or incidents appear reviewed.

Frankencoin suits users who want Swiss franc exposure on-chain, such as Swiss residents, businesses paying in CHF, or DeFi users who want a non-USD stablecoin. It is less suited to beginners who want a simple, insured product, since borrowing involves liquidation risk.