Genesis Global Trading, a cryptocurrency lending company, processed $1.114 billion in borrows and loans, according to its Digital Asset Lending Snapshot for the last quarter of 2018.
The business has gone from strength to strength in 2018. In September it crossed the $500 million mark for loans, having only launched in March 2018. And in Q4 business picked up even more steam. As Genesis reports: “We originated an additional $500 million in Q4 alone, bringing our total originations to $1.1 billion in 2018. Thus, Q4 loan originations increased more than 100% in the final three months of 2018 compared to the prior six-month period.”
In November and December there was a spike in demand for ‘spot loans’ from hedge funds and trading firms. Other business areas grew as well, particularly lending cash for crypto collateral, resulting in $153 million active loans outstanding. In its report, Genesis remarks that this growth has happened despite a decline in the price of BTC.
Fiat currency lending
In addition to the growth in digital currency loans, Genesis also launched a fiat currency lending service in Q4. Loans in USD or other fiat currencies developed in response to demand from its institutional counterparties. The attraction of this service is that long-term digital currency investors with appreciated assets can borrow cash against their crypto holdings without triggering a taxable event.
As Cointelegraph reported at the beginning of the current month, lenders in the cryptocurreny industry are reportedly weathering the recent crypto bear market better than others. Michael Moro, the chief executive officer of Genesis Global Trading, said at the time, “the bear market has certainly helped, at least has fuelled the growth.”
Mike Novogratz’s Galaxy Digital has also recently announced that it has raised $250 million in order to offer loans to crypto related businesses. According to Business Insider, Galaxy’s lenders will be able to get their loans by using crypto assets, real estate and crypto mining hardware as deposits.