In another proclaimed “first,” Swiss bank Dukascopy is revealing a new stablecoin called ‘Dukascash,’ barely four months after the official launch of its very own cryptocurrency, Dukascoin (DUK+). The forex firm has picked an ERC-20 standard on the Ethereum blockchain and claims that Dukascash is the first stable virtual coin issued for public use by a licensed and regulated Swiss bank.
Dukascopy explains that Dukascash is actually three different tokens EUR+, USD+, and CHF+ linked to fiat currencies EUR, USD and CHF respectively. As such, the new stablecoins will be represented by the family of ERC-20 tokens linked to the Euro, US dollar and Swiss Franc.
The value of each Dukascash token is calculated via the exchange rate of DUK+ to EUR, which is taken from internal Dukascoin marketplace plus spot exchange rates of EUR/USD and EUR/CHF forex pairs.
The new Dukascash can be minted and traded against Dukascoins or fiat currencies deposited by the client who wants to acquire Dukascash.
To ensure transparency, the bank publicizes three addresses of the token smart contracts.
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More about Dukascash
According to the bank, another important benefit of Dukascash is that these transactions would be overseen by the bank, a trusted financial institution. This may sound not very decentralized, but at least the traders would get their bank statements recognized and accepted by any kind of financial authority.
The new coin reserves will be held in a wallet address separate from where Dukascoins are stored to cover possible Dukascash buyback by the bank in case that token holders will want to sell their tokens to the bank.
Based on Dukascopy’s statement, issuance of new tokens will be subject to a public testing phase and limited to “crypto industry professionals,” whereby the minimum size of a transaction is established at 1000 or more tokens.
Available only in English, the Dukascash website, www.dukascash.com, is dedicated to improving the visibility of Dukascopy’s latest crypto product through offering general information and up-to-date news. The website also publishes the first official release of the Dukascash White Paper, which is also available for scrutiny.