Dukascopy Enhances Offerings: Launches Crypto Lending
Dukascopy, a Swiss broker operating with an online banking license, has expanded its offerings around cryptocurrency by introducing lending services. Announced recently, the broker will allow its users to quickly get cash with their holding cryptocurrencies as collateral.
Crypto Lending Services on Dukascopy
Cryptocurrencies are volatile, and many holders are optimistic about the future price rise. Crypto lending services have become popular as they allow crypto holders to access cash without giving up their cryptocurrency investments.
Dukascopy, under its crypto lending program, will allow users to get cash up to 50 percent of the value of their crypto asset holdings “without any repayment commitments.” users also need to have a multi-currency bank scout with the broker, which will act as the central hub for crypto lending.
Providing Access to Cash
The official announcement explained that “if client funds their MCA account with 0.1 Bitcoin at a price of $20,000 per Bitcoin, they can choose to keep their investment and access 50% of its value.”
It means clients will receive $1,000 in the MCA account, and the remaining $1,000 will be deposited into the newly established trading sub-account. The broker will also open “an automated long position of 0.1 BTC/USD at the prevailing price of $20,000 per Bitcoin will be opened in their trading account.”
Dukascopy also ensured the retention of the customer’s initial crypto deposits in the trading account.
“The Dukascopy trading account is designed for clients to effortlessly manage their transferred investments,” the broker stated. “Upon signing up, clients receive login details to access the Dukascopy trading platform, JForex. Additionally, if a client’s Multi-Currency Account (MCA) has sufficient funds, they can transfer their investments back to it without incurring any fees.”
While Dukascopy introduced crypto lending, many crypto companies, mostly in the United States, are facing backlash from the regulators for such services. The US securities regulator heavily fined and settled with multiple crypto-lending firms and also stopped Coinbase, the largest crypto exchange in the country, from offering such services to retail customers.