Genesis Global Trading published information according to which the firm, in just six months of work, issued loans to cryptocurrencies in the amount of more than half a billion US dollars to large institutional investors.
Genesis Global Trading is a registered SEC and FINRA OTC cryptocurrency dealer and is part of the business empire of Barry Silbert and Digital Currency Group (DCG). The company began its activities in March 2018 and today has active loans denominated in Bitcoin, Ethereum, XRP, Bitcoin Cash and other currencies. The total amount of loans issued was $ 553 million. Genesis Global Trading also received a special license that allows it to conduct business in the state of New York.
Borrowers, which are often hedge funds, use cryptocurrency funds to play for lower prices of digital currencies, as well as to hedge investment positions. According to Genesis Global managing director Michael Moreau, most of the funds that the company used to provide loans were originally borrowed from other cryptocurrency holders, because the company did not have time to meet the demand for cryptocurrency loans.
Moreau also noted that the company issued the largest loans to Etheraum. He used special demand from hedge funds, which most often use it to play to lower the price of an asset. However, the fall in the rate of the ether by 80%, interest in this asset has weakened a little. At the moment, Bitcoin remains in priority.