In the latest digital currency news, we are featuring one of the leading cryptocurrency lending firms Genesis Global Trading and its processing of more than $1.114 billion in borrowing and lending last year.
The news comes after the recently released Digital Asset Lending Snapshot that the company released for Q4 of 2018, after the first-issued snapshot which included data from the previous quarter (Q3 of 2018). Whereas in Q3 2018 Genesis changed hands with about $553 million since its beginning of activity in March 2018, the Q4 2018 data shows that the number has doubled.
Thus, the company concluded that:
“Q4 loan originations increased more than 100% in the final three months of 2018 compared to the prior six-month period.”
On top of this and despite the 44% price decline in Bitcoin (BTC), the loan book increased to $153 in active loans which is up $20 million from the third quarter. According to the company, the most active months were November and December 2018, since it reportedly saw “new hedge funds and trading firms which utilized ‘spot’ borrowing.”
The last quarter of 2018 was also crucial for Genesis because of the fiat currency lending launch with crypto collateral. According to the firm, this new service has been developed in response to the demand from its institutional clients.
“Long-term digital currency investors with appreciated assets can borrow cash against their crypto holdings without triggering a taxable event,” Genesis noted.
Ethereum (ETH) borrowing more than doubled since Q3 2018, according to the reports, but still only accounts for less than 10% of their total loan book, the company concluded.
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