Finance
Genesis Global Trading’s new lending unit generates $30 million in loans in its largest day ever
David Gray/Reuters
-
Bitcoin has tanked this week, falling
about 16%. -
But the bearish turn has been a blessing for Genesis
Global Trading’s new lending business. -
Genesis originated $30 million in crypto loans on
Tuesday, its largest amount ever, as many borrowing crypto are
doing so in order to take a short position.
Bitcoin markets have been in a tailspin this week, but that’s
actually been a blessing for one trading firm’s burgeoning new
lending business.
Genesis Global Trading, a crypto trading shop based in New York,
launched a crypto lending unit, Genesis Capital, earlier this
year. That business originated $30 million in crypto loans on
Tuesday, its largest amount ever, according to chief executive
officer Michael Moro. The company typically lends out around $2
million per day on average.
In a sense, it could be a bearish indicator for the market. Many
of the people who are borrowing crypto from the firm are doing so
in order to take a short position on a given coin.
At last check, the price of bitcoin — the largest crypto
— was down
about 15% at $6,517 a coin.
“Hedge funds could borrow bitcoin to short it, for example,” Lex
Sokolin, a partner at Autonomous NEXT, the financial-technology
analytics provider. “This would mean they borrow some amount in
bitcoin, sell it, and then repay in bitcoin (at whatever price)
whenever the loan comes due.”
Part of the bump in lending is also tied to the launch of
Ethereum Classic trading on Coinbase, according to Moro.
As for the business’ next steps, Moro said he expects to expand
its services. One thing the firm could do is start doing is put
the collateral they are given for loans to work.
“All the people borrowing and shorting are putting up
collateral,” he said. “We have the ability to turn around and do
whatever we want with the collateral.”
The company is also considering US dollar loans. This would
mean a bitcoin holder who wants to liquidate his or her
crypto could do so without selling it but still have access to
cash.
See also:
Get the latest Bitcoin price here.>>
-
Entertainment6 days ago
What’s on the far side of the moon? Not darkness.
-
Business7 days ago
Thoma Bravo to take UK cybersecurity company Darktrace private in $5B deal
-
Business7 days ago
How Rubrik’s IPO paid off big for Greylock VC Asheem Chandna
-
Business6 days ago
TikTok faces a ban in the US, Tesla profits drop and healthcare data leaks
-
Business5 days ago
London’s first defense tech hackathon brings Ukraine war closer to the city’s startups
-
Business7 days ago
Photo-sharing community EyeEm will license users’ photos to train AI if they don’t delete them
-
Entertainment6 days ago
How to watch ‘The Idea of You’: Release date, streaming deals
-
Entertainment5 days ago
Mark Zuckerberg has found a new sense of style. Why?