Switzerland-based online bank Dukascopy is developing its own Ethereum blockchain-based stablecoin, according to the white paper published on June 27
Per the document, Dukascopy intends to issue ERC-20 stablecoins dubbed “Dukascash” pegged to the euro, Swiss franc, and U.S. dollar, and gradually increasing the list of Dukascash tokens’ base currencies depending upon customer demand. The bank further specified:
“The initial Dukascash tokens tranches of roughly CHF 10 million or equivalent in each base currency will be issued and initially kept by the Bank as ‘unreleased’ tokens. Additional Dukascash tokens will be issued in tranches, depending upon client demand. Small portions (up to CHF 100,000) of unreleased Dukascash tokens will then be released in favor of the Bank to enable it to sell Dukascash tokens to clients.”
The bank notes in the white paper that the main purpose of introducing Dukascash is to bolster the use of blockchain of payment tokens issued by Dukascopy. The public testing stage will begin on July 3.
The bank plans to subsequently offer a custody service for Dukascash tokens, and accept Dukascash tokens from its clients at the exchange rate of 1:1 to the fiat base currency, as a payment for its services.
In January, Dukascopy partnered with European cryptocurrency exchange Bitstamp. Bitstamp will support bitcoin (BTC) transactions on behalf of Dukascopy Bank, wherein clients will be able to send BTC to their accounts, convert them to U.S. dollars and trade on the Swiss FX Marketplace. In addition to that, customers can transfer their funds back to the wallet in BTC.