Swiss online bank Dukascopy has joined a list of crypto-adept banks, by introducing its first automated cryptocurrency lending product. This will allow users to unlock the value of their digital assets while retaining their crypto investments.
Dukascopy Bank is a Swiss online bank that provides online and mobile trading, banking, and financial services such as foreign exchange, CFDs for stocks, metals, commodities, indices, cryptocurrencies, and binary options.
The bank is headquartered in Geneva, Switzerland, and has offices in Riga, Kyiv, Moscow, Kuala Lumpur, Hong Kong, Shanghai, Dubai, and Tokyo.
The bank, which is regulated by the Swiss Financial Market Supervisory Authority FINMA both as a bank and a securities dealer, has three subsidiaries.
Dukascopy Europe IBS AS, a licensed brokerage company based in Riga; Dukascopy Japan, a Type-1 licensed broker located in Tokyo, and SIA Dukascopy Payments, a European licensed payment and e-money company incorporated in Riga.
TradFi in crypto
Traditional banks venturing into the realm of cryptocurrencies is an emerging trend. These financial institutions, which have long been established pillars of the traditional financial world, are now recognizing the potential of digital currencies.
They are exploring services related to cryptocurrencies and blockchain technology, such as custodial solutions, cryptocurrency trading, and even offering digital wallets.
According to the Swiss bank, to access this new crypto service, users are required to open a Multi-Currency Account (MCA) with Dukascopy.
Once their supported cryptocurrencies are transferred, they are given access to start the process.
However, the bank noted that while the client’s crypto investment is converted into regular currency, half of it remains in the MCA, and the other half is transferred to the trading sub-account as collateral.
This process facilitates the transition of digital assets from the blockchain to the Dukascopy account, enabling clients to utilize the converted fiat currency for various financial needs.
Dukascopy added that the trading account is specifically designed for the efficient management of transferred investments. Users receive login instructions to access the Dukascopy trading platform, JForex.
Users can also transfer investments back to the MCA account without incurring fees, as long as the MCA account maintains sufficient funds.