In the Q2 of 2020, the total outstanding loan amount originated by Genesis Global Trading businesses reached $1.4 billion, i.e., it experienced a 118 percent of the quarter-to-quarter increase.
Genesis Using $2.2 Billion For New Introductions
Compared to Q2 of 2019, this year Genesis’ outstanding loan amount saw a surge of 324 percent and it utilizes over $2.2 billion for the new originations.
Since the time Genesis had been founded, it has introduced over $8.4 billion in crypto loans.
The CEO of Genesis, Michael Moro, recently while talking about the growth of this business, said,
“The growth of our business is a function of many things, not the least of which is our risk framework. As long as the business is growing within our existing risk framework, I’m very comfortable with it.”
He further mentioned that till the time cryptocurrencies experience a surge in their value, his firm’s quarter-to-quarter growth will not reach near 120 percent.
Increasing Yield Demand
It has been reported that in the Q2 spot trading of 2020, the total crypto traded by the platform worth $5.2 billion. Also, the platform introduced a derivatives desks a few months ago, and the value of that desks reached $400 million in June 2020.
According to a report, in the Q2, Genesis experienced an increasing demand for yield on crypto assets and it appears that in the past three months the cryptos have become yield-centric.
The report further stated that initially, the crypto market saw a mid-March crisis, and then in the Q2 market experienced low volatility, these incidents forced the traders to start pursuing for new opportunities to earn more profit.
The converted traders who have been integrating with Genesis had to execute three main yield strategies i.e., spot lending, call overwriting, and liquidity mining.
The head of derivatives at Genesis, Joshua Lim has recently said that most of the hedge funds are now lending additional tokens and deposit it on any of the platforms like Compound. This would help the user to earn a yield via liquidity mining.
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