Crypto Valley in Switzerland is the cluster of blockchain foundations and companies around Zug and Zurich. Switzerland attracts these firms with clear laws, not with loose rules, and the main drawback is the high price of Swiss staff and offices. This guide covers FINMA's token categories, the DLT Act, the crypto licenses Switzerland plans, the companies in the region, and how to check a development firm.
FINMA's token categories
In 2018 FINMA, the Swiss financial regulator, published guidelines for initial coin offerings. The guidelines sort tokens by their economic function:
| Category | What it is | Main consequence |
|---|---|---|
| Payment tokens | Meant as a means of payment | Anti-money-laundering rules apply to issuance and transfer services |
| Utility tokens | Give access to an existing app or service | Generally not securities if the service works at issuance |
| Asset tokens | Represent claims such as debt, equity or a share of earnings | Treated as securities; prospectus and trading rules apply |
Many tokens mix categories, and FINMA judges the substance, not the label. FINMA has since issued more guidance, including on staking services and on stablecoins, and for some stablecoin arrangements it expects a bank to guarantee the holders against default.
The DLT Act and ledger-based securities
Switzerland's DLT legislation took effect in 2021 and made three main changes:
- It created ledger-based securities. A right can exist on a distributed ledger and transfer by a ledger entry under the Code of Obligations, with no paper certificate or separate central register.
- It introduced a DLT trading facility license. One licensed facility can trade, settle and hold DLT securities, and retail clients can take part.
- It confirmed that crypto assets held by a custodian can be separated from the custodian's estate in bankruptcy.
FINMA licensed SIX Digital Exchange in 2021 as a stock exchange and central securities depository for tokenized securities. In most countries a token mirrors a register kept somewhere else, but in Switzerland the token itself can be the security. The tokenization platform guide and the STO overview explain how a token that is itself the security changes the design.
Licenses and the planned crypto institution
A financial intermediary, such as an exchange or a custodial wallet provider, must either join a recognized self-regulatory organization or come under direct FINMA supervision. Taking deposits needs a banking license, and broker-dealer activity needs a securities firm license. Two crypto-focused banks, Sygnum and SEBA (now AMINA), received Swiss banking licenses in 2019.
In October 2025 the Federal Council proposed two new license types: a payment instrument institution for stablecoin issuers and a crypto institution for crypto service providers. The public consultation closed on 6 February 2026. The government planned to send a bill to Parliament in the second half of 2026 at the earliest, but as of October 2026 the bill had not reached Parliament, so the new licenses are not yet law.
Switzerland is not in the EU, so the EU's MiCA regulation does not apply, and a Swiss license gives no EU passport. A Swiss firm that serves EU customers needs an EU authorization.
Crypto Valley: blockchain companies in Switzerland
The Ethereum Foundation has been based in Zug since 2014. The Web3 Foundation (Polkadot), the Tezos Foundation, the Cardano Foundation and many others also sit in the Zug and Zurich area. The CV VC Top 50 report, published in April 2026, gives these figures for Crypto Valley:
- 1,766 active blockchain companies, up 134% since 2020;
- 47% of all European blockchain funding in 2025;
- a combined value of $467 billion for the top 50 entities;
- ten entities valued above $1 billion, including Ethereum, Solana, Cardano, the custody firm Copper and Sygnum Bank.
Many protocols chose a Swiss foundation to look after their open-source code, because a foundation has no owners and a public authority supervises it. A foundation gives no protection from financial rules. A foundation that carries out regulated activity needs the matching license, and authorities now check foundations more closely than they did in 2017 and 2018.
For work on these ecosystems, see Polkadot development, Tezos dApps and Ethereum smart contracts.
Talent and cost
ETH Zurich and EPFL in Lausanne are leading universities in cryptography, distributed systems and formal verification. Zurich also hosts large engineering offices of global tech firms. Switzerland therefore has strong senior engineers and researchers, at salaries among the highest in Europe. Quotas limit work permits for people from outside the EU and EFTA, while EU and EFTA citizens move more freely. Many Swiss projects keep the foundation, governance, legal work and a small core team in Switzerland and hire developers remotely across Europe.
How to vet a blockchain development firm in Switzerland
A Swiss firm is worth its higher price when the work depends on Swiss law. Examples are ledger-based securities, a DLT trading facility, custody with segregation, or systems that a FINMA-supervised bank will rely on. Swiss banks and asset managers often require their vendors to meet outsourcing and data protection standards, and a local firm already knows those standards. For protocol, smart contract and front-end work, a remote team usually costs much less. Hold that team to the same documentation and security standards.
Questions to ask
- Have you built ledger-based securities, and how did you link the registration agreement to the token contract?
- Have you passed a bank's vendor due diligence or a FINMA outsourcing review?
- How do you meet Swiss data protection rules for investor data?
- Who audits your contracts, and do you use formal verification for high-value code?
- If you say you are FINMA-licensed or a member of a self-regulatory organization, where can we check that?
The UK guide describes a nearby market outside the EU, and the regional guide compares nine.
Frequently asked questions
Where is Crypto Valley in Switzerland?
Crypto Valley is the area around Zug and Zurich. The name comes from the many blockchain foundations and companies based in the canton of Zug.
Do I need a Swiss foundation to launch a token?
No. A foundation is one way to look after an open protocol. Product businesses often use a company (AG or GmbH) instead. The choice depends on governance, tax and how you plan to fund development.
Can a Swiss security token be sold to EU investors?
Only under EU rules, which require a prospectus or an exemption and, for intermediaries, an EU authorization. Swiss law decides whether the security is valid but does not give access to other markets.
Does FINMA approve tokens?
No, FINMA does not approve tokens as such. FINMA's ICO guidelines describe how a project can ask FINMA whether financial market law applies, and a lawyer usually prepares that request. Regulated activities need a license or membership in a self-regulatory organization.