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.

Bitcoin Lender Genesis Global Issues $2 Billion in Loans During Record Quarter 3

Bitcoin Lender Genesis Global Issues $2 Billion in Loans During Record Quarter 4

Genesis Global Trading was the fifth crypto firm to receive a New York state Bitlicense back in 2018.

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.

Tags in this story
BCH, Bitcoin, bitcoin cash, BTC, COVID-19, Crypto trading platform, Cryptocurrency lender, Ethereum, Genesis Global Trading, Loan Originations, Michael Moro

Image Credits: Shutterstock, Pixabay, Wiki Commons

Purchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH here.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews

Automated trading with HaasBot Crypto Trading Bots

Blockchain/Cryptocurrency Questions and Answers

What Are E-stablecoins And How Do They Operate?
What Are E-Stablecoins And How Do They Operate?
August 11, 2022
How to Choose a Legit Crypto Casino?
August 5, 2022
Spend Crypto
5 Ways to Spend Crypto
August 2, 2022
What Is A DAO LLC?
What Is A DAO LLC?
August 2, 2022
Can Running A Lightning Node Earn You Passive Income?
Can Running A Lightning Node Earn You Passive Income?
July 5, 2022


CryptoCurrencyUSDChange 1hChange 24hChange 7d
? --- 0.00 % 0.00 %

bitcoin
Bitcoin (BTC) $ 23,351.00
ethereum
Ethereum (ETH) $ 1,845.71
tether
Tether (USDT) $ 1.00
usd-coin
USD Coin (USDC) $ 0.999441
bnb
BNB (BNB) $ 308.99
xrp
XRP (XRP) $ 0.381595
cardano
Cardano (ADA) $ 0.539952
binance-usd
Binance USD (BUSD) $ 0.99937
solana
Solana (SOL) $ 40.66
dogecoin
Dogecoin (DOGE) $ 0.081814