The crypto world seems to be entering every market these days earlier in the week Genesis Global Trading Inc., famously known as the big institutional market maker for digital currencies, revealed the commencement of a lending business.
They also further revealed that the latest subsidiary, Genesis Global Capital, would permit investors and businesses to borrow cryptocurrencies amounting up-to $100,000 or more for a certain period of time anywhere between two weeks to six months. They will provide Loans in the form of cryptocurrencies like bitcoin, ether, ether classic, XRP, bitcoin cash and zcash to name a few.
In a recent press release Genesis Capital also said that “We believe now is the ideal time to offer an institutional-focused lending service because it will increase general liquidity in the marketplace, also it will motivate new financial institutions to vigorously take part in a two-sided market and increase the working capital used by companies to scale their digital currency-centric businesses,”
The company also recommended that investors could utilize their lending potential to “hedge total portfolio risk or take speculative short positions,” however they also see other use cases for the service.
They were quick to justify this statement by giving an example for such a situation, the company referred to in this “situation” explained , could be remittance companies which have to ” make immediate settlements with their customers, but wouldn’t want to purchase a hefty balance of bitcoin and maintain that risk on their books.”
BlockTower Capital, an existing client of the parent trading company, and DV Chain, a crypto trading company are among the few distinguished clients who have seen an opportunity with Genesis Capital
DV Chain CEO Garrett SEE revealed the why they were attracted to collaborate with Genesis at a recent interview on CNBC by stating. “The majority of trading volume in several cryptocurrencies is denominated in bitcoin, which has created a demand for a bitcoin lending market,”
This move by Genesis entering into the crypto lending is the latest inclusion of institutional services in a market that has just recently witnessed the launch of bitcoin futures trading and a lot of attention for the bitcoin exchange-traded funds.