Dukascopy Unveils Crypto Lending: Access Cash, Keep Assets
Swiss online bank Dukascopy has announced the launch of its new crypto lending service, allowing customers to access cash while keeping their digital assets. This move by Dukascopy aims to provide a solution for those who want to benefit from their cryptocurrency holdings without having to sell them.
The new service, called Dukascopy Connect 911, will allow customers to deposit their digital assets as collateral and then borrow up to 50% of the asset’s value in traditional currencies such as USD or EUR. Customers can choose between different loan durations ranging from 7 to 90 days.
According to Dukascopy, the interest rates for these loans will be competitive and will vary depending on factors such as the type and value of the collateral. The loans will be available to both private and institutional clients.
To ensure the security of customers’ funds, Dukascopy will use multi-signature wallets to hold the collateral. These wallets will require multiple signatures to authorize any transactions, providing an extra layer of protection against fraud or theft.
In addition to accessing cash, customers will also be able to retain ownership of their digital assets, allowing them to benefit from any future price appreciation. This is a key advantage over selling digital assets, as it allows customers to continue participating in the cryptocurrency market without losing their investment.
Dukascopy Connect 911 is part of Dukascopy Bank’s wider strategy to expand its cryptocurrency services. The bank, which has been active in the cryptocurrency space since 2018, aims to provide a comprehensive range of services to meet the needs of both individual and institutional clients.
The launch of the crypto lending service comes at a time when demand for such services is increasing. As the cryptocurrency market continues to grow, many investors are looking for ways to access liquidity while still holding onto their digital assets.
Dukascopy’s move into crypto lending puts it in competition with other players in the market such as BlockFi and Celsius Network, which have also seen success in providing similar services.
Overall, Dukascopy’s new crypto lending service offers customers a convenient and flexible way to access cash without having to part ways with their digital assets. With competitive interest rates and a focus on security, this service is likely to attract interest from both individual and institutional clients looking to leverage their cryptocurrency holdings.
