Swiss online bank Dukascopy introduces a groundbreaking crypto lending product, allowing clients to borrow against their digital assets while retaining their crypto holdings. Learn how this innovative solution works.
Dukascopy, a Swiss online bank based in Geneva, is pioneering the field of cryptocurrency lending with a novel offering. Clients can now borrow cash in U.S. dollars while keeping their cryptocurrency investments intact. This revolutionary lending program permits users to access a loan equivalent to 50% of the value of their crypto assets in fiat currency.
To utilize this feature, customers must create a multi-currency bank account (MCA) and transfer their desired crypto holdings. Subsequently, they can locate their digital assets in the “Investments” section and opt for the “Crypto lending/borrowing” choice. As a result, 50% of their crypto investments’ market value becomes accessible in fiat within their MCA account.
Upon agreeing to a “Trading Agreement,” users will gain login credentials for a trading sub-account, where they will discover another 50% of the crypto investment’s market value available in fiat as collateral. Simultaneously, their crypto investment remains an open position.
For instance, depositing 0.1 bitcoin (BTC) in the MCA account would provide clients with approximately $1,405 in their bank account and an equivalent amount in their trading account. Dukascopy emphasizes the automation of these processes and imposes a 1% commission on incoming crypto transfers.
Dukascopy’s groundbreaking crypto lending product is a significant development, especially in a crypto landscape facing regulatory pressures and notable setbacks in the lending sector.