Dukascopy offers crypto-backed fiat loans to traders

abdelaziz Fathi

Switzerland’s forex bank and broker, Dukascopy has rolled out a novel lending product that allows customers to leverage their cryptocurrency holdings. The automated feature enables users to borrow up to 50% of the value of their digital assets in fiat currency while still retaining ownership of their original crypto investments.


Dukascopy Bank, headquartered in Geneva, is now offering clients the option to secure a cash loan in U.S. dollars while keeping their cryptocurrency investments intact. Under the bank’s new lending program, clients can access a loan for up to half of the value of their cryptocurrency assets in fiat currency.

The lending program requires users to have a multi-currency bank account with the broker, which acts as a central hub for crypto lending. To make use of this feature, customers need to open a multi-currency bank account (MCA) and transfer the cryptocurrency they want to utilize. They can then access their digital assets in the “Investments” section and choose the “Crypto lending/borrowing” option.

Upon signing a “Trading Agreement,” users will also receive login credentials for a trading sub-account, in which they will find an additional 50% of the investment market value of their crypto holdings in fiat currency as collateral, alongside their crypto investment as an open position.

This means that if a user transfers 0.1 bitcoin (BTC) to their MCA account, they would receive an equivalent of $1,405 (at the time of writing) in their bank account and an equal amount in fiat on their trading account. All these operations are automated, and the Swiss financial institution noted that a 1% commission applies to the incoming cryptocurrency transfer.

Dukascopy’s introduction of this lending service comes amid challenging times for the cryptocurrency industry and the crypto lending sector in particular. Both are facing increased regulatory pressures and high-profile bankruptcies such as those of Celsius and Voyager.

Dukascopy Bank has developed rich crypto-fiat functionality over the last several years together with its retail banking activities. More than 6.1 million Dukascoins were issued by the end of the year 2022. However, the broker’s cryptocurrency business was a major focus for clone scams as the pandemic has made people more susceptible due to concerns about personal finances. The company has been taking steps towards strengthening its cryptocurrency offering, including allowing clients to deposit and withdraw funds in digital coins, as well as enabling free internal crypto transfers between users of mobile banking.

A total of 1160 instruments, including FX, Bullion, CFDs on commodities, bonds, Indices, cryptos, stocks, ETFs are presently available on the bank’s proprietary trading platform JForex.

Read this next

Digital Assets

JPMorgan’s stablecoin ventures into interbank transactions

JPMorgan Chase & Co.’s proprietary digital token, JPM Coin, is set to expand its use case by facilitating interbank transactions on Partior, a blockchain ledger developed in collaboration with DBS Bank, Temasek, and Standard Chartered.

Retail FX

Interactive Brokers’ client base surges past 2.5 million

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.89 million daily average revenue trades, or DARTS, in November 2023 compared to 1.93 million transactions in the prior month. The figure is three percent lower on a yearly basis, and also dropped slightly from a month earlier.

Executive Moves

Andrew Gibson launches TimberFX brokerage brand in Cyprus

After nearly two years at Tavira Securities as Head of Product Development, industry veteran Andrew Gibson is launching a new FX brokerage business based out of Cyprus.

Market News

US Dollar’s Trajectory Amidst Seasonal Trends and Economic Indicators in December 2023

As we traverse the final stretch of 2023, the noteworthy depreciation of the US dollar dominates the financial landscape

Inside View

Unlocking the Financial Potential of SMEs: Is FinTech the Key?

The rise of the gig economy for early-stage startups and freelancers has highlighted the increasing importance of small-scale business transactions and banking requirements. Unfortunately, this has also exposed a significant gap in the SME banking landscape.

Digital Assets

South Africa’s FSCA receives 138 crypto license applications

The Financial Sector Conduct Authority (FSCA) of South Africa is currently processing a slew of applications from cryptocurrency companies seeking operational licenses.


Exclusive Interview with Greg Rubin, Head of Axi Select: Unveiling the Future of Capital Allocation in the Financial World

Today, we are thrilled to kickstart another series of exclusive interviews with top executives in the financial services industry, hosted by our FinanceFeeds Editor-in-Chief, Nikolai Isayev. Our next guest is none other than Greg Rubin, the mastermind behind Axi Select.

Digital Assets

Crypto.com receives UK’s EMI license, paving way for regulated expansion

Cryptocurrency exchange Crypto.com has been authorized as an Electronic Money Institution by the United Kingdom’s Financial Conduct Authority (FCA).

Digital Assets

Ripple’s Metaco joins Zodia Custody’s network for connectivity with Layers 0 and 1

“As the industry undergoes a pivotal transformation, our networked infrastructure is dedicated to standardise, govern and connect institutional digital asset flows — an essential step in forging use cases that transcend individual companies.”