A Dual Cryptocurrency Note (DCN) allows you to earn a high, fixed-term interest rate on your BTC or USD, with a potential sell of your BTC or purchase of BTC at a predetermined target price (the “Strike Price”), on a specific date in the future.
You can pick between BTC to USD and USD to BTC DCN pairs. There are two components to each DCN pair:
1) Term Return: This is the amount of BTC or USD interest you will receive upon the maturity of your DCN. This amount doesn’t change based on the price of BTC at maturity. You will get the Term return in the original digital asset of your DCN.
2) DCN Outcome:
A BTC to USD DCN allows you to select a future Strike Price at which you’d be happy to sell your BTC for USD. There are two possible outcomes for this transaction:
- If the BTC Price at maturity is at or below the Strike Price, you’ll receive your original BTC amount back.
- If the BTC Price at maturity is above the Strike Price, you’ll receive your BTC amount back converted into USD at the Strike Price.
A USD* to BTC DCN allows you to select a future Strike Price at which you’d be happy to buy BTC, using your USD. There are two possible outcomes for this transaction:
- If the BTC Price at maturity is at or above the Strike Price, you’ll receive your original USD amount back.
- If the BTC Price at maturity is below the Strike Price, you’ll receive your USD amount back converted into BTC at the Strike Price.
* USD funds will be funded and returned in USDC on a 1:1 basis through your USDC Transaction account, subject to certain circumstances in which you may receive your funds back in USD. Find out more details in our Dual Cryptocurrency Note Agreement.