Genesis Global Trading, a cryptocurrency lending firm processed over 1.1 billion dollars in 2018. This was revealed in a recently released digital asset lending snapshot for the Q4 of 2018.
Processing 1.1 Billion Dollars In Crypto Winter Market
After recording a total of 553 million dollars as at the Q3 as revealed by the record, the firm went ahead to process over 100 percent of the earlier record in the Q4. The firm noted in its release that Q4 loan origination increased more than 100 percent in the final three months of the year to over 1.1 billion than the previous six months.
The 44 percent decrease in the value of Bitcoin did not affect the loan as there were increased to 153 million dollars in active loans, from 20 million dollars in Q3 as stated by the firm. The firm also noted that the most active months till date were November and December of 2018 since it experienced new hedge funds and trading firms utilizing the platform.
Also, the firm noted that due to the demand from its institutional clients, the firm had added the service of fiat currency lending with crypto collateral in the last quarter of 2018. It was noted that long term digital currency investors with appreciated assets can now borrow cash against their crypto holdings without triggering a taxable event.
Furthermore, Ethereum borrowing was stated to have doubled since the Q3 but it still only accounts for less than 10 percent of the loan book which is well below the peaks of Q1 and Q2.
The experience of the firm in 2018, especially in the fourth quarter is a contrast to the experiences of most crypto firms. The crypto winter market has made many firms in the crypto space to fold up, many downsizing its staffs and many recording losses. As reported of recent, NEM, cryptocurrency project will be joining the league of those in the cryptocurrency world that will reduce their workforce soon.
Lending Business Thriving In Cryptocurrency Winter Market
The experiences of crypto lenders are not as negative as the experiences of other crypto firms in the crypto market. The market experience of Genesis Global Trading in the Q4 is a testament to this. Also, Michael Moro, the Chief Executive Officer of Genesis Global Trading stated recently that the bear market has been of help in aiding the growth of the business.
Also, Mike Novogratz through its crypto merchant bank, Galaxy Digital raised 250 million dollars recently to offer loans to crypto related firms in the winter market.