Bitcoin Lender Genesis Global Issues $2 Billion in Loans During Record Quarter
Genesis Global Trading has reported a 100% jump in new loan originations in the first quarter. The cryptocurrency lender and trading platform added a record $2 billion in new loans in the three months leading to March 2020, up $1 billion from the previous quarter. BTC accounted for 44.8% of the loans and bitcoin cash (BCH) 5.8%.
In a recent update, Genesis said new loan issuances soared 354% from a year ago. Active loans outstanding briefly touched $1 billion around the middle of February, before falling to $649 million at the end of the quarter.
Quarter-on-quarter, active loans rose 19% from $545 million previously, it said. That’s despite a 50% intra-day drawdown in the price of BTC in mid-March. Altogether, the lender has originated $6.2 billion in loans and borrows since it started operations in 2018.
Genesis provides loans to corporate borrowers such as hedge funds and trading firms in the form of cryptocurrency or cash. Most of the funds that the lender provides as loans are borrowed from elsewhere at lower rates of interest, before charging higher rates when it lends.
Nine months ago, BTC-denominated loans dominated the company’s loan portfolio. But that has gradually declined to 44.8% in the review quarter, as more borrowers take up cash. Loans issued in BCH have risen from just 0.5% in June last year to 5.8%. Ethereum-based loans account for 5.6% of the issuances while ETC, XRP, and the LTC share is just under 5%.
Genesis Chief executive officer, Michael Moro, said the performance was encouraging against a backdrop of global economic uncertainty brought on by Covid-19.
“Despite being in the epicenter of the global pandemic and experiencing first-hand the volatility and unpredictability of the market, we have never felt better about our business … experiencing no defaults, capital losses or delinquencies at any point over the period,” he said.
What do you think about the cryptocurrency lending business at a time of massive stimulus? Let us know in the comments section below.
The post Bitcoin Lender Genesis Global Issues $2 Billion in Loans During Record Quarter appeared first on Bitcoin News.