FINMA-regulated retail FX broker Dukascopy has announced that it has started trading operations on Ether to US dollar (ETH/USD) CFD available for Dukascopy Bank and Dukascopy Europe self-trading accounts and for clients with Mobile Current Account (MCA).
In regard to CFD trading, ETH/USD conditions are similar to BTC/USD, with the applicable leverage being 3:1 in FINMA-regulated Dukascopy Bank. Dukascopy Europe, which is regulated by ESMA, leverage will be limited to 2:1.
MCA clients are able to hold Ether on their Dukascopy Bank accounts and transfer it to other MCA clients. The broker already allows MCA accounts to hold and transfer Bitcoin. Transfers of Ether CFD between MCA clients are free of charge. Soon Dukcasopy MCA and trading accounts will be able to make withdrawals and deposits by means of cryptocurrencies.
As Dukascopy enters the cryptocurrency world, the bank will first test crypto funding on Bitcoin, allowing clients to transfer funds to/from the bank in BTC to/from their crypto wallets. The offering is expected to extend to other digital currencies as the crypto funding element is meant to become a significant part of Dukascopy’s infrastructure.
The retail FX broker is also planning to develop its own cryptocurrencies, Dukascoins and Dukasnotes, with its ongoing infrastructural preparation for its own ICO for cryptocurrencies on Ethereum blockchain. The initial coin offering is subject to a green light from the Swiss Financial Market Supervisory Authority (FINMA).
Until the authorization of FINMA, these materials are not a public offer or a promise of service.
Dukascoins are designed as a crypto means of payment to be created in limited quantity to serve both as payment and speculation means. Dukascoins are expected to gain in value due to limited supply. Their initial purpose is to reward new clients in a promotional plan aiming at popularizing the Dukascopy Connect 911 messenger and associated Mobile Current Accounts of Dukascopy to a very wide extent.
Unlike Dukascoins, Dukasnotes are designed to be stable in value. The convertibility of Dukasnotes into real (fiat) currencies will be at all time guaranteed by Dukascopy via a guarantee fund subject to independent audit and deposited with Dukascopy. In order to stabilize the Dukasnotes exchange rate, they will be pegged to a fiat currency.