Dukascopy, a Swiss brokerage firm operating under an online banking license, has made a strategic move into the crypto sector by launching its cryptocurrency lending services. This recent development enables Dukascopy customers to access quick cash using their crypto holdings as collateral.

Given the inherent volatility of cryptocurrencies and the widespread optimism regarding their future value, crypto lending services have gained significant popularity. These services offer crypto holders the ability to secure liquidity without parting ways with their crypto investments.

Under the Dukascopy crypto lending program, users can now access cash amounting to up to 50 percent of the total value of their crypto assets. The most intriguing aspect is that this loan comes without any explicit repayment commitments. However, there is a crucial prerequisite for users to be eligible for this service: they must maintain a multi-currency account (MCA) with Dukascopy, which serves as the central platform for facilitating crypto lending.

Dukascopy: Swiss Broker Introduces Crypto Lending Service!

In an official statement, the company detailed how this service works: “If a client funds their MCA account with 0.1 Bitcoin at a price of $20,000 per Bitcoin, they can choose to retain their investment and access 50% of its value.” To put it in simpler terms, if a client deposits 0.1 Bitcoin into their MCA account, they will receive $1,000 in that account, while the remaining $1,000 will be transferred to a newly created trading sub-account. Additionally, Dukascopy will open an automated long position of 0.1 BTC/USD at the prevailing market price of $20,000 per Bitcoin in the client’s trading account. Notably, Dukascopy has ensured that the customer’s initial crypto deposits remain intact in the trading account.

The broker has also made it convenient for clients to manage their transferred investments. It states, “The Dukascopy trading account is designed for clients to effortlessly manage their transferred investments. 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.”

It’s worth noting that while Dukascopy has embraced the crypto lending space, many cryptocurrency companies in the United States have faced regulatory scrutiny and backlash for providing similar services. U.S. securities regulators have imposed heavy fines and reached settlements with multiple crypto-lending firms. These regulatory challenges highlight the evolving landscape and varying approaches to cryptocurrency-related services across different jurisdictions. Also, don’t forget to Check the Broker Reviews.