Genesis Global Trading, the U.S. cryptocurrency dealer, has loaned more than $1.5 billion in cryptocurrency.
Incepted in March 2018, the company has allocated more than $1.53 billion in loan to institutional borrowers. These include hedge funds and other financial firms that used crypto assets to short digital currencies, hedge investments or finance business operations.
The company says that the market’s interest in cryptocurrencies is steadily growing. Hence the demand for such loans has spiked. In the first quarter, the company loaned over $425 million — 15% more than in 2018. The company also points out that similar lending firms are entering the market.
According to Genesis, it possessed $183 million in active loans at the end of the first quarter denominated in BTC, ETH, XRP, Bitcoin cash etc. Genesis also revealed that 68% of Genesis’ loan book was in BTC. Genesis Trading Chief Executive Officer Michael Moro said:
“We expect more new entrants into the marketplace, and lending rates to correspondingly decrease. But since this space is still so new, I think the strong level of growth will continue for quite some time.”
Besides, there “is consistent borrowing demand for bitcoin among market-makers and high-frequency trading firms that need working capital for arbitrage opportunities.”
Currently, BTC is trading at $5,481.
Back in August, Altcoinbuzz reported that BlockFi, cryptoasset-to-USD lender, announced that it expanded its services to California.