Genesis, a specialist in digital currency trading and lending, originated more than USD1.1 billion in loans and borrow ing for its institutional clients in Q4 2019, marking seven quarters of consecutive growth for the firm.
Genesis, a specialist in digital currency trading and lending, originated more than USD1.1 billion in loans and borrow ing for its institutional clients in Q4 2019, marking seven quarters of consecutive growth for the firm. Total active loans are up to USD545 million, a 23 per cent increase from the third quarter figure of USD450 million.
Notably, Genesis’ active loan book and originations increased despite a roughly 14 per cent decline in the price of bitcoin, as well as other digital currencies, demonstrating a growing interest in the asset class that remains independent of digital currency price movement.
While bitcoin still attracts the largest amount of interest, the share of USD borrowing continued to climb, reaching 37 per cent of the company’s active loan portfolio in Q4 2019, up from 31 per cent in the prior quarter. In particular, international investors showed strong demand for USD borrowing, which is often translated into demand for stablecoins due to frictions from the traditional banking sector. Cash lenders continued to enjoy high yields due to strong global economic conditions, which create a premium on large pools of liquidity.
Genesis facilitates trades for institutional investors and high net worth individuals looking to buy or sell large sums of digital currency. Genesis provides liquidity to its trading partners, along with same-day settlement, 24/7 trading, and deep institutional expertise developed from trading billions of dollars in digital assets since entering the industry in 2013.