Genesis Surpassed $1 Billion in Crypto Loans Last Year


Genesis Global Capital, a major crypto-lending firm, recorded around $1.11 billion in loans last year, the company  announced on January 30.

Genesis is an institutional trading firm focused on providing two-sided liquidity for digital currencies. Formerly known as SecondMarket, Genesis focuses on both institutional and individual traders.

Back in October, Newconomy reported that Genesis had loaned approximately $553 million to institutional borrowers since March 2018.

While the entire cryptocurrency market took a beating in the last quarter of 2018, Genesis recorded significant growth as loans more than doubled in the Q4, compared to the first three quarters of the year.

As of December 31st, Genesis lent $1.11 billion, out of which $638 million are recorded as “loans” while $475 million are “borrows”. An additional $153 million is present in the “active loans” category.

Looking at the timeline, November and December were by far the most active months for the company as the “new hedge funds and trading firms utilized “spot” borrow”, the company noted.

Michael Moro, the CEO of Genesis Global Capital says:

“It should be possible for people to go long and short bitcoin. It can’t just be a long-only market. It should be perfectly okay to take the other side, to think that prices are going to fall, and to make that short bet.”

As expected, the loan portfolio is dominated by Bitcoin (60%), while Ripple (XRP) constitutes around 50% of all altcoins. Although ETH’s borrowing more than doubled compared to the previous quarter, it is still less than 10% of the entire loan book.

“On November 14th, the price of BTC fell 16% in a single day, which jumps started a period of increased loan origination, as short sellers piled on with unprecedented size,” it is said in the 2018 report.

Genesis has also decided to turn their “cash lending pilot program” into a permanent service following a strong reception from the market.

“Long-term digital currency investors sitting on appreciated assets can borrow against their crypto holdings to get cash liquidity without triggering a taxable event.”

Thus, apart from the crypto lending, the company now also offers the fiat currency lending business.