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   482

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.

SEC Chairman to Speak About BTC Listing

It looks like Bitcoin listing on the tradional exchanges won't happen in the nearest future
20 September 2019   80

Chairman of the US Securities and Exchange Commission (SEC) Jay Clayton said that bitcoin needs more regulation for listing on large exchanges. It is reported by CNBC.

If [investors] think there’s the same rigor around that price discovery as there is on the Nasdaq or New York Stock Exchange ... they are sorely mistaken. We have to get to a place where we can be confident that trading is better regulated.
 

Jay Clayton

Chairman, SEC

He was talking about listing conditions for bitcoin itself, and not derivatives, such as CME futures.