Genesis Capital: Crypto Lending Market 'Continues to Experience Sustained Growth’

Siamak Masnavi
  • 24 Jul 2019

Genesis Global Capital (aka "Genesis Capital"), an affiliate of Genesis Global Trading and one of the largest institution-only crypto lending firms, reported on Tuesday (July 23) its Q2 results, noting that in Q2 it had "initiated more loans and borrows than in any other quarter on record, adding $746M in originations."

In the Q2 2019 edition of its quarterly 'Digital Asset Lending Snapshot' report, Genesis Capital made several interesting observations:

  • At the end of Q2 2019, the total value of "active loans outstanding" was $452 million versus $181 million in Q1 2019, i.e. a quarter-over-quarter (QoQ) increase of 149%.
  • Originations went up 48% QoQ, which means that Genesis Capital has just experienced its fifth straight quarter of "strong growth."
  • Genesis Capital has originated over $2.3 billion in "loans and borrows" since the business was launched in March 2018.
  • The QoQ growth was driven by (a) a "strong" increase in USD and stablecoin borrowing; and (b) the significant increase in the price of Bitcoin (BTC).

Genesis Capital Q2 2019 - Figs 1 and 2.jpg

Regarding Facebook's proposed cryptocurrency Libra, Genesis Capital says that it believes Libra is net positive for crypto since it "will enable hundreds of millions, if not billions, of people to understand the utility of a digital currency and the difference between a permissioned and permission-less ledger."

Alll Images Courtesy of Genesis Global Capital