In line with a recent Digital Asset Lending Snapshot ‘report‘ for Q4 of last year, crypto lending firm Genesis Capital processed around $1.114 Mln in borrows and lends earlier in 2018.
At the end of Q3 last year, the firm revealed its 1st Digital asset lending ‘snapshot‘, that rumored that Genesis Capital solely processed around $553 Mln at the time summing from the beginning of its activity in March 2018. Thus, the firm concludes that “Q4 loan originations were hiked above 100% within the final 3 months of 2018 compared to the previous six-month time period.”
Genesis Capital declared that, despite a 44% decline in the price of Bitcoin [BTC], its loan book enhanced to $153 Mln in active loans, up $20 Mln from Q3. Moreover, in line with the firm, the foremost active months to date were Nov. and Dec. 2018, since it ‘reportedly‘ “saw new hedge funds and trading firm’s utilizing ‘spot’ borrow.”
Within the last quarter of 2018, the firm additionally launched fiat currency lending with crypto collateral. The firm explains that this new service has been developed in response to demand from its institutional users, adding that:
“Long-term digital asset investors with appreciated assets could borrow cash against their crypto holdings without triggering a rateable tax event.”
Genesis Capital additionally added that “Ethereum [ETH] borrowing over doubled since Q3 however still solely accounts for less than 10 p.c. of our loan book, well below the highs seen in Q1 and Q2.”
As ‘reported‘ earlier this month, lenders within the cryptocurrency business are reportedly weathering the recent crypto bearish market better than others. The chief executive officer of Genesis Capital named ‘Michael Moro’, stated at the time that “the bearish market has definitely helped, at least has fired the expansion.”
Just recently, an another news broke that Mike Novogratz’s crypto merchant ‘bank‘ named ‘Galaxy Digital’ is reportedly raising a min. of $250 Mln to provide loans to crypto-related corporations.