Home Coins Ethereum (ETH) Crypto lender Genesis issued $5.2 billion worth of new loans in Q3

Crypto lender Genesis issued $5.2 billion worth of new loans in Q3

- Advertisement -


Crypto lending and trading firm Genesis continues to grow.

The firm issued $5.2 billion worth of new loans in the third quarter of 2020, more than double its previous record of $2.2 billion in Q2, according to a report shared with The Block on Friday. 

Genesis began its lending business in March 2018 and since then has originated $13.6 billion worth of loans in total. The recent growth came through increased cash and altcoin loan issuance, said Genesis, along with a “modest” increase in the notional value of crypto loans outstanding.
Genesis’ active loans outstanding grew 50% in Q3 to $2.1 billion, compared to $1.4 billion in the previous quarter. Outstanding loans are balances that borrowers are obligated to repay.
As Genesis facilitates lending, it also lets others lend via its platform. As of September 30, 2020, Genesis had 165 unique lenders, up 47.3% from the previous quarter. “September’s monthly total interest payout represented over 20% of all interest paid in the trailing 12-month period,” said the firm.

Genesis further said that growth in banks’ deposits is also helping it. “Banks must make loans somewhere; prime brokerage clients are great places to deploy excess capital during a pandemic. These clients have historically worked closely with Genesis and are now lending both excess USD and BTC generated from the short CME basis trade back to Genesis, ultimately increasing our asset base as well,” explained the firm.

Share of BTC declined 

Altcoins and the U.S. dollar drove Genesis’ loan portfolio in Q3, not bitcoin (BTC). The firm’s BTC composition as a percentage of loans outstanding fell sharply in Q3 to 40.8% as compared to 51.2% in the previous quarter.

“ETH, USD and Equivalents and ‘other’ altcoins drove the increase in book size in Q3,” said Genesis. “ETH loans outstanding jumped to 12.4% of the overall book, USD increased to 34.5%, and other altcoins jumped to almost 5.0%.”

The main driver of this portfolio shift came from the decentralized finance (DeFi) boom, according to Genesis, which said, “our trading counterparties started actively borrowing ETH and stablecoins to lever up liquidity mining strategies.”

Genesis also facilitates spot and derivatives trading and these businesses also grew significantly in Q3. The firm recorded a $4.5 billion volume on the spot trading side, up 285% from the same quarter in 2019. On the derivative trading side, Genesis recorded $1 billion in total volume, up from $400 million in Q2 when it launched its derivatives trading business.

While Genesis facilitates most customer trades via its over-the-counter (OTC) desk, the firm said it had seen consistent growth in electronic execution. In September, Genesis executed almost 30% of all spot trading volume through its new Prime smart-order routing engine, the firm said.

© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.



Source link

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
472FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,559FollowersFollow
2,230SubscribersSubscribe
USD - United States Dollar
EUR
1.21
GBP
1.34
CHF
1.12
NOK
0.11
JPY
0.01
CAD
0.77
AUD
0.74

Most Popular

US Bill Would Require Stablecoin Issuers to Get Bank Charters

A new U.S. Congressional bill would require stablecoin issuers to secure bank charters and secure regulatory approval prior to circulating any stablecoins.U.S. Representatives...

BANANO Monthly Update #32 (December 2020) | by Banano | Banano | Dec, 2020

In what was a quick turn-around in application and implementation, BANANO is now on the Sweden-based exchange Altilly with BTC and ETH pairs.Full...

Visa will facilitate USDC payments, thanks to fresh partnership

Visa has teamed up with blockchain services company Circle to make USD Coin (USDC) stablecoin transactions compatible with certain credit cards.“After Circle itself...
bitcoin
Bitcoin (BTC) $ 19,242.26
ethereum
Ethereum (ETH) $ 599.05
ripple
XRP (XRP) $ 0.632057
tether
Tether (USDT) $ 1.00
bitcoin-cash
Bitcoin Cash (BCH) $ 294.60
bitcoin-cash-sv
Bitcoin SV (BSV) $ 171.42
litecoin
Litecoin (LTC) $ 89.38
eos
EOS (EOS) $ 3.07
binancecoin
Binance Coin (BNB) $ 30.33
okb
OKB (OKB) $ 5.39
tezos
Tezos (XTZ) $ 2.40
leo-token
LEO Token (LEO) $ 1.36
cardano
Cardano (ADA) $ 0.159618
monero
Monero (XMR) $ 128.09
stellar
Stellar (XLM) $ 0.186577
chainlink
Chainlink (LINK) $ 14.00
huobi-token
Huobi Token (HT) $ 4.01
tron
TRON (TRX) $ 0.031268
usd-coin
USD Coin (USDC) $ 0.999431
dash
Dash (DASH) $ 105.69
neo
NEO (NEO) $ 18.07
iota
IOTA (MIOTA) $ 0.345461
nem
NEM (XEM) $ 0.200674
zcash
Zcash (ZEC) $ 76.74
maker
Maker (MKR) $ 561.03
paxos-standard
Paxos Standard (PAX) $ 1.00
ethereum-classic
Ethereum Classic (ETC) $ 6.26
vechain
VeChain (VET) $ 0.016547
true-usd
TrueUSD (TUSD) $ 1.00
ftx-token
FTX Token (FTT) $ 4.52
kucoin-shares
KuCoin Shares (KCS) $ 0.837923
waves
Waves (WAVES) $ 7.09