Swiss Stablecoin CHFD
Security and trust are fundamental to any financial infrastructure. As we explore the potential of a Swiss franc stablecoin, we are pleased to work with ChainSecurity - a Swiss company with globally recognised expertise in blockchain security, to assess the technology underpinning CHFD and help ensure it is built on a strong foundation.
About Swiss Stablecoin CHFD
Swiss Stablecoin implements CHFD, a Swiss-Franc-denominated stablecoin issued on Ethereum through two upgradeable contracts. CHFD is the ERC-20 token that holders own and transfer, while CHFD_VASP is the compliance layer holding VASP registration, holder allowlisting, limits and the transfer-validation logic.
Audit Summary
Our review of CHFD drew on ChainSecurity’s expertise in Ethereum token standards, signature-based authorization, and the trust models of upgradeable smart contracts. We examined how the token and compliance layers interact across transfers, minting, burning, and administrative actions, with particular attention to restricted accounts, paused operations, and the lifecycle of signed instructions.
This analysis revealed that restrictions intended to control transfers also blocked enforcement burns, while signed VASP instructions could not be cancelled before expiry. All six low-severity findings were corrected in Version 2, including these issues and a front-running weakness in permit-based burns.
We also assessed administrative authority, recovery mechanisms, and storage-layout compatibility across upgrades. Informational findings concerning concentrated privileges and recovery limitations were acknowledged; trusted administrators and secure key management remain central to the system’s security. The report also identifies integration constraints, including VASP signature verification that supports only externally owned accounts. Off-chain services and key-management infrastructure were outside the audit scope.
In summary, we find that the codebase provides a good level of security.
It is important to note that security audits are time-boxed and cannot uncover all vulnerabilities. They complement but don’t replace other vital measures to secure a project.