MiCA Crypto Alliance Welcomes Frankencoin Association as a New Member
The MiCA Crypto Alliance is pleased to welcome Frankencoin Association as a new member of the Alliance. As stewards of the decentralised Frankencoin protocol, the largest and most established Swiss franc stablecoin, the Frankencoin Association acts as a catalyst for a distinctive perspective to our network: a fully decentralised, collateral-backed digital currency operating across multiple blockchain networks, with a published EU MiCA classification and a clear regulatory position under both Swiss and EU law.
About Frankencoin
Frankencoin (ZCHF) is a decentralised stablecoin that maintains a stable value against the Swiss franc. First deployed in 2023, it is now live on eight blockchains and has maintained its peg without significant deviation since launch, making it the most widely used Swiss franc stablecoin in existence.
Unlike issuer-backed stablecoins, Frankencoin does not rely on a central counterparty to guarantee its value. It is instead secured by on-chain collateral subject to liquidation mechanisms designed to preserve the peg. Each component of the system has undergone independent audits covering smart contract security, economic design, and overall system integrity.
From a regulatory standpoint, Frankencoin classifies as a payment token under Swiss law and as a crypto-asset under MiCAR. Its decentralised structure means that the obligations set out in Titles II, III, and IV of MiCAR are not applicable. The Frankencoin Association has published both a Swiss regulatory classification and a public summary of its EU MiCA classification, available on the project's website.
Why this membership matters
Decentralised stablecoins occupy a distinct and technically complex position within the MiCA framework. Their classification, the boundaries of issuer obligations, and the interaction between on-chain governance and regulatory accountability are all questions that the industry is still working through. Frankencoin's approach to these questions, grounded in published legal opinions and independent technical audits, offers a substantive reference point for the broader market.
For regulators, banks, and infrastructure providers considering exposure to non-custodial or algorithmically governed stablecoins, understanding how a live system navigates MiCA classification in practice is directly relevant. Frankencoin Association's participation in the Alliance brings that operational experience into shared dialogue with the legal, compliance, and policy professionals who make up our membership.
Through this membership, the MiCA Crypto Alliance and Frankencoin Association will collaborate on questions of stablecoin classification, white paper preparation for admission to trading under MiCA, and the standards applicable to crypto-assets where traditional issuer obligations do not straightforwardly apply.
"Joining the MiCA Crypto Alliance allows the Frankencoin Association to contribute a decentralised perspective to the regulatory conversations shaping the EU's digital asset framework. Through this collaboration, we can better interface with listing teams at EU trading platforms, and with listing processes that require MiCA white papers for all their token admissions, regardless of the applicability of exemptions. This reduces friction and raises the bar, in line with our values of promoting responsible stablecoin design and best practices in regulatory compliance." - The Frankencoin Association
Looking ahead
We look forward to working with the Frankencoin Association to deepen our collective understanding of decentralised stablecoin infrastructure under MiCA, and to support the development of consistent, evidence-based standards across the EU digital asset market.
For more information about Frankencoin, its regulatory classification, and technical documentation, visit frankencoin.com.
