Bitcoin Lender Genesis Global Issues $2 Billion in Loans During Record Quarter

Genesis Global Trading has reported a 100% jump in new loan originations in the first quarter. The cryptocurrency lender and trading platform added a record $2 billion in new loans in the three months leading to March 2020, up from $1 billion from the previous quarter. BTC accounted for 44.8% of the loans and bitcoin cash (BCH) 5.8%.

In a recent update, Genesis said new loan issuances soared 354% from a year ago. Active loans outstanding briefly touched $1 billion around the middle of February, before falling to $649 million at the end of the quarter.

Quarter-on-quarter, active loans rose 19% from $545 million previously, it said. That’s despite a 50% intra-day drawdown in the price of BTC in mid-March. Altogether, the lender has originated $6.2 billion in loans and borrows since it started operations in 2018.

Genesis provides loans to corporate borrowers such as hedge funds and trading firms in the form of cryptocurrency or cash. Most of the funds that the lender provides as loans are borrowed from elsewhere at lower rates of interest, before charging higher rates when it lends.

Genesis Global Trading was the fifth crypto firm to receive a New York state Bitlicense back in 2018.

Nine months ago, BTC-denominated loans dominated the company’s loan portfolio. But that has gradually declined to 44.8% in the review quarter, as more borrowers take up cash. Loans issued in BCH have risen from just 0.5% in June last year to 5.8%. Ethereum-based loans account for 5.6% of the issuances while ETC, XRP, and the LTC share is just under 5%.

Genesis Chief executive officer, Michael Moro, said the performance was encouraging against a backdrop of global economic uncertainty brought on by Covid-19.

“Despite being in the epicenter of the global pandemic and experiencing first-hand the volatility and unpredictability of the market, we have never felt better about our business … experiencing no defaults, capital losses or delinquencies at any point over the period,” he said.

What do you think about the cryptocurrency lending business at a time of massive stimulus? Let us know in the comments section below.

The post Bitcoin Lender Genesis Global Issues $2 Billion in Loans During Record Quarter appeared first on Bitcoin News.



from Bitcoin News https://ift.tt/3aYmGJH

Comments

Post a Comment

Popular posts from this blog

L2 Crypto Project Blast Achieves $660M TVL Amid Mockery for Key Developer Recruitment

Image
Recent data reveals that Blast, the new layer two (L2) blockchain platform, has amassed a significant $660 million in value within its decentralized finance (defi) protocol. Concurrently, while accumulating a variety of crypto assets, the initiative has commenced a search for experienced senior blockchain developers. While Amassing $660M, L2 Blast Project Searches for Developers In recent times, Blast has emerged as a focal point of interest. This project, conceptualized by Pacman , the mind behind the non-fungible token (NFT) marketplace Blur, has rapidly gained traction. Within a span of less than a week, the platform’s total value locked (TVL) soared to approximately $400 million. Concurrently, Blast faced allegations of resembling a Ponzi scheme. During this period, Paradigm, a principal investor in the project, admitted that the team had overstepped in certain aspects of communication and implementation. Pacman has also countered the Ponzi scheme allegations and further cl
Read more

Harsh Laws Make Bitcoin Holders Consider Renunciation or Dual Citizenship

Image
As digital currencies become a mainstay in society, a great number of governments have enforced strict tax guidelines, severe money transmission rules, and tough regulations. Because of a few nation-states’ harsh rules against cryptos, there are individuals who plan to renounce their citizenship in order to become stateless. Some people will also attempt to get double-citizenship, as both of these acts may help sovereign individuals avoid government intrusion and theft. Also Read: As FATF Regulations Galvanize, Crypto Mixing Applications Are Targeted A Cryptocurrency Advocate’s Quest for Financial Sovereignty May Involve Hard Choices It’s been close to 11 years since the inception of Bitcoin and during the last few years government agencies and law enforcement have been cracking down on digital currency holders. In certain areas around the world, a few countries have extremely difficult crypto laws and stringent capital gains taxes. Countries like the U.S. have imposed strict regul
Read more

2021 Bitcoin Price Predictions: Analysts Forecast BTC Values Will Range Between Zero to $600K

Image
As bitcoin has touched new price highs on Thursday nearing the $50k handle, people have been curious as to where the price will go in the future. Meanwhile, despite the gains so far, a number of luminaries, analysts, executives, and proponents from the crypto space believe the leading crypto asset will reach between $60k to six-digits this year. Mike Novogratz Predicts $100K Bitcoin: ‘Other CFOs and CEOs Are Saying, What Should We Be Doing?’ Satoshi Nakamoto’s invention has gained mass appeal in recent times as the leading digital asset bitcoin ( BTC ) has reached its highest value ever in 2021. On Thursday morning (EST), BTC spiked to an all-time high (ATH) at $48,697 per unit. Earlier in the morning at around 2 a.m., bitcoin was exchanging hands for $44,485 and saw an 8.98% increase since then. At the time of publication, at 6:30 p.m. (EST) on February 11, 2021, bitcoin (BTC) is swapping for $47,821 per coin. With BTC so close to the $50k mark, people have been forecasting
Read more