Swiss online bank Dukascopy has announced the launch of its cryptocurrency lending program.
This solution will allow its users to unlock the potential of digital assets while keeping their cryptocurrency investments intact.
Those who wish to take advantage of Dukascopy's new cryptocurrency lending program should go through a few steps.
The first step requires clients to set up a Multi-Currency Bank Account (MCA) with Dukascopy to ensure a smooth transition of their digital assets from the blockchain to their Dukascopy account, according to the chainwire website.
Once the MCA setup is complete, users can move their cryptocurrency assets from the blockchain wallet to the Dukascopy MCA, ensuring that the digital assets are ready to be converted into usable funds.
In the next step, clients must go to the "Investments" section of their MCA and select the "Crypto lending/borrowing" option to begin the process of converting their crypto investments into regular currency.
As the cryptocurrency is converted to regular currency, half of it remains in the MCA, and the other half is transferred to the trading sub-account as collateral. This automated process also opens a position reflecting the initial investment in the cryptocurrency, ensuring that the client's initial investment is preserved and allowing them to use the converted conventional currency for their financial needs.
The bank noted that the trading account is specifically designed to efficiently manage the transferred investments, and all users receive login instructions to access Dukascopy's JForex trading platform.
It is worth noting that users can transfer investments back to the MCA account without incurring any fees if there are sufficient funds in the MCA account.
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