Friday, December 6, 2019

Genesis Reveals It Has Loaned Over $1.5 Billion Worth of Cryptocurrency

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Adedamola Bada
I'm Damola, a computer engineer from Obafemi Awolowo University. A crypto enthusiast, marketer, and writer who is seeking to achieve career excellence through hard work and positive contribution to the organization that aspires for excellence. Contact me on [email protected]

Genesis Global Trading, a US-based cryptocurrency company, recently made a revelation that institutional borrowers have patronized its services since the establishment of the company in March 2018. This claim is evident in the $1.53 billion worth of digital assets that have been borrowed from Genesis Global so far; a situation which further shows that the emerging crypto lending market is highly in demand.

Genesis, A Lifeline For Institutional Borrowers

Crypto assets have come to be very advantageous to institutional borrowers which include hedge funds and other financial firms that tap into the resources of cryptocurrency to hedge investments, finance business operations or short digital currencies.

In the first quarter of 2019, the total loans collected from Genesis reached $425 million, a 15 percent increment from what was recorded at the end of 2018, according to the company.

Genesis Records A busy First Quarter

The first quarter of 2019 was quite a busy period for the New York-based company as confirmed by the $183 million in active loans which ended the quarter denominated in Ether, Bitcoin Cash, XRP (Ripple coin), Bitcoin and other coins.

Genesis pointed out that when it was established last year, only a few businesses provided large spot digital asset borrowing. However, it appears that a lot has changed since then as several platforms have sprung up to show interest in lending digital currencies.

“We expect more new entrants into the marketplace, and lending rates to correspondingly decrease. But since this space is still so new, I think the strong level of growth will continue for quite some time,” said Michael Moro, the Chief Executive Officer at Genesis Trading in an email.

Bitcoin Is The Digital Asset Mostly In Demand

A close look at the loan book of Genesis Trading clearly shows that Bitcoin (BTC) is the most sought after at the rate of 68%. The borrowing demand for Bitcoin among high-frequency trading firms and market-makers that require working capital for arbitrage opportunities is consistently on the rise, according to reports.

Bitcoin has continued to make progress since mid-December 2018, rising by about 80%. On Wednesday the major digital asset fell by 1.8% at $5,428 on the Bitstamp platform.

Genesis Trading introduced a pilot program in the fourth quarter of 2018 in which the company introduced lending the U.S dollars. Ever since then, the crypto lending platform has continued to record growth in the U.S dollar business, which also happens to be the source of 10% of its active loan portfolio, next to Bitcoin.

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