Genesis Global Trading Inc., a big institutional market maker for digital currencies announced the launch of Genesis Global Capital – Institutional Digital Currency Lending.
Global Capital will allow investors and businesses to borrow cryptocurrencies in quantities of $100,000 or more for two weeks up to six months. The currency of loans will be in bitcoin, ether, ether classic, XRP, bitcoin cash, zcash, and etc.
According to a press release, the lending service will increase general liquidity in the marketplace, encourage new financial institutions to participate in a two-sided market and increase the working capital that companies use to scale their cryptocurrency-centric businesses.
Global Capital suggest investors to use the company’s lending capacity to hedge total portfolio risk or take speculative short positions or for other cases.
Some companies, such as BlockTower Capital and DV Chain are already interested in the lending service.
The majority of trading volume in several cryptocurrencies is denominated in bitcoin, which has created a need for a bitcoin lending market.
DV Chain CEO