Genesis to Process $746M Worth Crypto Loans in Q2

This value exceeded the first quarter by 48% and BTC still dominates in the loans' portfolio
24 July 2019   794

Oriented to institutional investors, the lender Genesis Global Capital, a division of the brokerage company Genesis Global Trading from the business empire of Barry Silbert, in the second quarter, processed $ 746 million in cryptocurrency and fiat loans. This exceeded the first quarter by 48%.

Bitcoin continues to dominate in the portfolio of outstanding loans with a share of 62%, but it is worth adding that in the second quarter the share of steylcoins increased by 100% (24%). Thus, international investors are increasingly borrowing money in the US dollar or its associated stabcocoins, Genesis reported.

At the same time, Ethereum occupies 3.9% of the outstanding loan portfolio, followed by Litecoin (3.7%) and XRP (2.5%). The company itself takes the coins from large players at 4-5% per annum, and gives them a loan at 6.5-7.5%.

In the second quarter, the cost of active loans (outstanding) reached $ 454 million, which is 149% higher than the results of the first quarter.

Recall that in 2018, Genesis processed cryptocurrency loans for $ 1.1 billion, and in the first quarter of this year - for $ 425 million.

Thus, since its inception, the company has processed loans of almost $ 2.3 billion.

Genesis is regulated by the United States Securities and Exchange Commission (SEC) and FINRA. The latter, by the way, was recently accused of delaying the issuance of licenses by broker-dealers to companies involved in the cryptocurrency industry.

Investment company Grayscale Investments, which is also owned by Silbert, in the second quarter set a record for the value of assets under management - $ 2.7 billion.

Lightning Labs to Raise $10M

As reported, the raised funds will be allocated to enforce the team with developers and commercial speciaslists
06 February 2020   296

Lightning Labs attracted $ 10 million investment during the A-series financing round, and also introduced a beta version of its payment service for outlets that work with bitcoin.

If bitcoin is going to reach its potential as a viable global currency, it’s going to need to scale beyond the base layer. Similar to how Visa relieves banks from handling all fiat currency traffic, Lightning relieves the base bitcoin chain from handing all transactions, thus bring more speed and fee efficiency to the network.

 

Brian Murray

Managing Director at Craft Ventures

With the help of the raised funds, the company intends to hire more developers and commercial specialists, so that it will be able to convey the applied solutions to users. In 2018, Lightning Labs unveiled a beta version of its LND scaling solution and received $ 2.5 million investment from several investors, including Twitter CEO Jack Dorsey and Litecoin creator Charlie Lee.

Now a beta version of the new Lightning Loop service has been launched, with the help of which outlets can more effectively manage payment channels and maintain liquidity in them. Several customers have already become interested in this tool, including the developer of the Fold shopping application, which processed approximately 1,600 transactions through the Lightning Network during the holidays in 2019.

We’re growing fast and Lightning Labs’ loop service makes it simple to manage our lightning node’s liquidity, letting our team focus on building out great user experiences that bring lightning to the world.

 

Will Reeves

Fold

According to Lightning Labs, this year the company will be developing tools for working with larger payment channels. We are talking about both individual channels, which individually can hold more than $ 1,500, and multidirectional ones, which break down payments into smaller parts.