Based in new York OTC cryptocurrency dealer Genesis Global Trading announced that in just six months of work issued to its institutional clients loans in the cryptocurrency amounting to more than half a billion dollars. About it writes Bloomberg.
Genesis Global Trading is registered with the SEC and FINRA broker and enters a business Empire Barry Silbert and his Digital Currency Group (DCG).
The company began to issue cryptocurrency loans in March of this year and today has an active loans denominated in bitcoin, Ethereum, XRP, Bitcoin, Cash and other currencies, in the amount of $130 million the Total amount of granted loans amounted to $553 million.
Borrowers, including hedge funds and other financial institutions use these funds at lower prices of digital currencies, and to hedge investment positions.
At the same time, as noted by the CEO of Genesis Global Michael Moreau, most of the funds issued as loans were initially borrowed from other holders of cryptocurrencies, as the demand for service exceeded the capacity of the company.
According to him, the largest loans issued in Ethereum hedge funds, which typically use such capital to bet on lower prices of an asset. However, after March this year the course Ethereum has fallen to 80%, interest in the service waned. As of September Ethereum accounted for only 4% of loans, while a large part of bitcoin.
Michael Moreau also says that a significant portion of funds used for hedging positions on derivative markets, which opened in December last year. According to him, Genesis Global pay 5 — 7% for a loan, while their customers will charge 10 — 11%. In the future, the company promises to publish quarterly reports on the flows of their assets.
In may of this year, Genesis Global Trading Regulations received a special license to do business in the state of new York.