Dukascopy Launches ICO for Its Own Payment Token

Dukascopy Bank has launched its own initial coin offering on February 28, one day prior to Mizuho Bank. Dukascoin (DUK+) is a payment token using the ERC-20 standard on the Ethereum blockchain.

With DUK+, customers will be able to execute free and instants transfers of coins inside Dukascopy by simply knowing the receiver’s phone number, with associated counterparties being duly identified as they become clients of a Swiss bank. Dukascoins are protected by the Swiss deposit insurance scheme covering CHF 100,000, protection against bankruptcy of the bank, according to Andre Duka, CEO and CTO of Dukascopy.

“Issuance of new tokens will be free of charge and limited to new current accounts opening at Dukascopy Bank, whereby each new client will get 5 Dukascoins for free and an equal amount will be granted to a referrer if any exists. The bank itself will receive 10 new coins from undistributed tokens every time a new account is created. These coins will be used to pay rewards, support liquidity and for other similar purposes.”

Andre Duka, CEO-CTO of Dukascopy Bank
Andre Duka, CEO-CTO of Dukascopy Bank

“All clients have an opportunity to use standard banking services like payment cards, investments, cheap currency exchange etc. And finally, bank’s clients are always free to move their coins outside of the bank, exiting the secure area of the regulated bank in favor of risks and freedom of the blockchain”, Duka added.

A secure internal marketplace has been created to allow clients to post conditional orders (providing liquidity) or picking the desired orders from other participants (using liquidity) as they transact DUK+. A special program to remunerate large providers of liquidity has been set up by the broker, as well as a rewards program motivating Dukascoins savings, based on both crypto and fiat currencies. Trading clients may benefit from using Dukascoins to fund trading accounts.

“As a CEO of the bank, I’m excited about the project and invite everybody to take a look at the unique opportunities which will be offered at the initial stage of the project. I guarantee there are many interesting options worth exploring. Those who are interested to follow the Dukascoin project, I welcome to check the web site www.dukascoin.com that was specifically created for the ICO project. There you can find all the latest news, features, dates as well as the project’s white paper”, Andre Duka concluded.

Dukascopy first announced its plan to launch its own cryptocurrency in October 2018. Dukascoins are designed as a crypto means of payment to be created in limited quantity to serve both as payment and speculation means. The bank will also launch Dukasnotes which are designed to be stable in value and are guaranteed by Dukascopy via a guarantee fund subject to independent audit and deposited with Dukascopy.

In 2018, when ESMA announced new stricter rules for CFD trading, Dukascopy’s Chief Revenue Officer Laurent Bellieres told The Industry Spread that measures imposed in such an open world as the internet are hardly effective. The new restrictions will surely fuel a run towards less stringently regulated brokers and “ESMA will get the situation exactly opposite to the objective: clients will be exposed to higher risks”. The broker favors an alternative approach: regulating smartly, imposing higher ethical and risk management standards, raising the level of the industry and risk awareness within the public.