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Genesis Capital reports $870 million in new originations for digital lending

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Genesis Capital reports $870M in new originations for digital lending

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Genesis Capital, the institutional lender for Bitcoin and other cryptocurrencies released Q3 reports, which highlighted a “strong, sustained growth in the lending business.” An official tweet from Genesis Global Trading made the information public after stating,

“In Q3, they (Genesis Capital) added $870M in new originations, breaking the previous record of $746M set in the prior quarter.”

The official report suggested that the company broke its previous record in Q2 reports (of $746 million) by adding $870M in new originations this quarter. As of September 30, 2019, active loans outstanding stood at $450M, roughly flat from the previous quarter despite a significant decrease in Bitcoin’s price.

 

The report highlighted that at the end of Q3, cash loans represented 31.2% of Genesis Capital’s active loan portfolio, up from 23.5% at the end of Q2 and 14.0% at the end of last year. Similar to its Q2, the company experienced a “strong demand internationally to borrow USD,” most of which translated to the procurement of stablecoins such as USDC and PAX.

According to the above graph, Genesis started the year at approximately $20 million outstanding and “after seeing moderate growth to $40 million towards the end of Q2, Q3 saw nearly a 4x increase in cash loans outstanding, reaching a high of $160 million in mid-September.”

Based on the report, while the company’s current cash loan book sits at $140 million, Genesis attributed the recent reduction in outstanding loans “to deleveraging after the spot selloff from $10,000 to $8,000 as well as a flattening of forward curves which were formerly in steep contango for the majority of Q3.”

That being said, the Q3 displayed a steep increase in international counterparties comprising of 45% outstanding cash loans, with nearly 70% originating from Asia.

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Priya is a full-time cryptocurrency writer at AMBCrypto concentrating mostly on privacy coins. A graduate in economics, Priya focuses on developments on Ethereum and blockchain technology.
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