Institutional Crypto Lender Genesis Capital: $870M in New Loan Originations in Q3 2019

Siamak Masnavi

Institutional crypto lender Genesis Global Capital (aka "Genesis Capital"), a subsidiary of crypto-focused venture capital firm Digital Currency Group (DCG) and an affiliate of over the counter (OTC) crypto trading firm Genesis Global Trading (aka "Genesis Trading"), announced on Wednesday (October 30) that in Q3 2019 it added $870 million in new loan originations.

In its "Digital Asset Lending Snapshot" report for Q3 2019, Genesis says that it is still seeing growth in its crypto lending business, managing to add $870 million in new loan originations (for the sake of comparison, the previous record, set in Q2 2019, was $746 million). (Loan origination "is the process by which a borrower applies for a new loan, and a lender processes that application.") Since Genesis launched the crypto lending business in March 2018, its total loan originations amount to $3.1 billion.

Genesis Capital Q3 2019 Report - Fig 1.png

According to the report, just like in Q2 2019, "cash loans as the percentage of loans outstanding increased significantly" in Q3 2019; by the end of the quarter, cash loans were 31.2% of the company's active loan portfolio. Strong international demand for borrowing USD is continuing, with a large percentage of these being in the form of USD-collateralized stablecoins such as USDC and PAX. 

Genesis also says that Bitcoin remains "one of the most liquid forms of collateral available for asset-based lending." 

Featured Image and Chart Courtesy of Genesis Global Capital