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Types of crypto tokens in Switzerland: key points
- Switzerland distinguishes between three token categories: payment tokens, utility tokens and asset tokens.
- The classification determines which rules apply — not the technical implementation.
- Pure utility tokens that can already be used may fall outside securities law; asset tokens may be treated as securities or financial instruments.
- Hybrid forms are possible and are classified according to their principal economic function.
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What is a payment token?
Payment tokens are intended by the provider, or actually used, as a means of payment or to transfer money or value. Bitcoin is a typical example. Whether other cryptoassets or stablecoins also qualify as payment tokens and, in addition, as deposits, securities or fund units depends on their specific structure.
Some tokens develop this function only over time: a token originally launched as an app token may become a payment token once it is accepted in practice as a means of payment.
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What is a utility token?
A utility token gives its holder digital access to an application or service. It is comparable to a digital voucher: the holder is entitled to use a particular service. NFTs may also qualify as utility tokens if they are structured accordingly — for example, as access rights to an offering.
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What is an asset token?
An asset token represents a claim to an underlying value — for example, an interest in a company, physical assets or future income. In economic terms, asset tokens therefore correspond to shares, bonds or derivatives. An equity token representing an interest in a company is a typical example of an asset token.
Whether an asset token qualifies as a security or financial instrument, or falls outside both categories, depends on its specific structure. If, for example, it merely represents tokenised ownership of a physical object, its treatment follows the rules applicable to that object. Securities may take the form of traditional financial instruments or entirely blockchain-based DLT securities.
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Why is the correct classification so important?
The category determines which obligations apply to a project in Switzerland. Pure utility tokens may fall outside securities law if the digital function is already operational and no investment or payment function is added. Payment tokens may trigger anti-money laundering obligations as soon as they are held or transferred for third parties. Asset tokens that qualify as securities or financial instruments are subject to the same rules as traditional financial products.
Because many projects combine features of several categories, careful classification is worthwhile as early as the design phase — correcting the structure later is generally more burdensome than planning it properly from the outset.
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Frequently asked questions
Can a token fall into several categories at the same time? Yes. Many tokens combine features of several categories and are known as hybrid tokens. The principal economic function in the individual case is decisive.
Does an NFT automatically qualify as a utility token? No. Whether an NFT qualifies as a utility, payment or asset token depends on its specific structure, not on the NFT format itself.
Are stablecoins automatically payment tokens? Generally yes, because they are primarily designed to preserve value and perform a payment function.
Does every asset token require a prospectus? No. A prospectus is generally required only if the asset token qualifies as a security and is offered publicly to retail investors, subject to applicable exemptions.
Who determines how a token is classified? The project sponsors must initially make the classification themselves. A regulatory classification request may be submitted to FINMA for a specific set of facts; FINMA’s response is not a general product approval.
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