By
Temitope Olatunji
April 24th, 2024
Last year, Genesis Capital managed to originate over 1 billion U.S. dollars in crypto loans in 10 months since the launch of this service.
It is a widely known fact that the previous year was a rather challenging one for a number of crypto-related companies due to the bear market. Nevertheless, such a market situation has created rather appropriate conditions for the firms that are trying to find alternative ways to make money, for example, for those ones that deal with crypto loans.
According to the information provided by Genesis Global Capital, an institutional crypto loans firm, in 2018 it managed to process over $1.1 billion in lending and borrowing transactions.
What Genesis Global Capital Represents Itself
Genesis Global Capital is affiliated to Genesis Global Trading, the company that was formerly known as SecondMarket and was launched as a crypto trading firm in 2015. A little bit less than a year ago, in March 2018, it opened its above-mentioned crypto lending business.
This business started to gain popularity rather quickly attracting traders who wanted to borrow digital assets with a view to hedge their investments or short a crypto.
The company has revealed that at the current moment it manages a book of over $153 million in active loans. Recently, it has taken a decision to offer its clients an opportunity to take loans in fiat, but in comparison with crypto loans, this offer has stayed practically unnoticed.
The firm also positioned itself as a helper for crypto startups that don’t want to go down being influenced by a bear market.
Michael Moro, the CEO of Genesis Global Capital, explained their vision the following way:
“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.”
Lending and Borrowing
In its report, Genesis Global Capital has revealed that over the past year it was carefully analyzing its client feedback and the situation with the growing popularity of derivative marketplaces, which showed that the number of market participants wanting to lend or borrow crypto assets was actively increasing.
Genesis reached the billion dollars mark in Bitcoin loans on December 14, 2018, though only less than three months earlier it had announced passing $500 million milestone in loans since their launch in March.
Putting in other words, the last quarter of 2018 brought the firm another $500 million in Bitcoin loans while to get its first half of a million it needed practically a twice longer period.
Though prices of cryptocurrencies, including Bitcoin, XRP, Ethereum, and other major crypto assets, started falling already at the beginning of the previous year, the last months of 2018, when the price of Bitcoin fell 39%, turned out to be rather busy for Genesis.
The company’s CEO is not very positive about the rates of the market recovery (he believes that it may take years). Moro supposes that they could use this chance to expand their business.