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Genesis Q3 Digital Asset Market Report: Company Sees Significant Increase in Institutional Activity, Adds Over $ 5.2 Billion in Loan Origins

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NEW YORK–() – Genesis, an industry pioneer and leader in premier digital currency brokerage services, today released its Third Quarter 2020 Digital Asset Market Report. The report features Genesis’ record quarter – with more than $ 5.2 billion in new originations, $ 2.1 billion in active loans outstanding at the end of the quarter and $ 1.0 billion in transaction volume on bilateral derivatives – as well as an analysis of trends in the company’s lending, cash, and derivatives trading desks.

The main performance highlights of the new report include:

  • Quarter-over-quarter loan origination continues to grow at an exponential rate. More than $ 5.2 billion in new Genesis creations during the third quarter marks the largest quarter on record for the company and is more than double the previous record set in the second quarter. Cumulative originations increased 61.5% from the prior quarter, bringing total originations to $ 13.6 billion since Genesis began lending in March 2018.
  • Outstanding active loans increased by approximately 50% quarter over quarter from $ 1.4 billion in Q2 2020 to $ 2.1 billion at the end of Q3.
  • Institutional lenders continue to flock to Genesis. By the end of the third quarter, the number of unique lenders had increased 47% from the end of the previous quarter and 275% from a year ago.
  • Bitcoin as a percentage of outstanding loans fell sharply in the third quarter compared to the second quarter. However, the overall size of Genesis’ loan portfolio has grown significantly. This momentum was driven by increased activity in ETH, USD and equivalents, as well as other altcoins – an impact of cash mining on DeFi protocols.
  • The derivatives office recently launched by Genesis has grown rapidly. The company recorded a total volume of bilateral derivatives (on bilateral options, futures and exchange-cleared blocks) of $ 1.0 billion in the third quarter, an increase of 150% from a partial period of the second quarter when the derivatives trading desk was launched. This increase in volume is largely the result of a rapid adoption of the company’s hedging option structures and loan franchise opening the door to bilateral credit relationships.

“This quarter, Genesis’ growth was largely driven by activity from institutional investors and other trading companies,” said Michael Moro, CEO of Genesis. “We have seen tremendous growth in the number of unique institutional lenders on the Genesis platform and, perhaps most interestingly, we have seen an increase in the number of commercial companies lending us money against collateral. Bitcoin. These savvy investors continue to find new ways to integrate digital assets into their overall strategies, which is a key indicator of a mature market.

In addition, the company officially launched its Genesis Guard third quarter service – a rapid platform focused on meeting the needs of sophisticated investors in a growing list of jurisdictions. At launch, Genesis served Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Ethereum Classic, MANA, ZCash, Horizen, XRP, and XLM. The company plans to add new assets on a monthly basis.

To read the full third quarter 2020 digital asset market report, click here. Additionally, follow these links for more information on Genesis’ recent launch of a derivatives trading desk and transformation into a prime brokerage of digital assets.

Genesis is a wholly owned subsidiary of Digital currency group. In addition to Genesis, DCG is the parent company of Grayscale investments, the world’s largest digital currency asset manager, and CoinDesk, a leading company in the media and events industry.

About Genesis

Genesis is a leading full-service digital currency brokerage firm that provides a single point of access for institutional investors and global institutional investors. The company provides sophisticated market participants with a fully integrated platform to trade digital assets in cash, futures, options, borrowing, lending and custody, creating new opportunities for returns while increasing the capital efficiency for our counterparties.

Built on the only global OTC digital asset trading company registered with the SEC and FINRA, Genesis combines unparalleled operational excellence, a seamless user experience and top-notch customer service to deliver the full suite of Global asset services investors need for their digital asset portfolios.

For more information on Genesis, please visit genèsetrading.com and follow @GenesisTrading on Twitter.



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