One of the largest OTC dealers cryptofauna Genesis Global Trading announced that loaned digital assets worth more than $ 500 million to institutional clients, including hedge funds and other financial institutions.
New York-based company started issuing cryptocurrency loans in March of this year and at the moment the rest of her balance is $130 million in active loans denominated in BTC, ETH, XRP, BCH and other currencies. The company explained that the main aim of borrowers, for which they take credit funds is a game of lowering prices of digital assets and the hedging of investment positions.
The service has become so popular that the firm had a large part of the funds to borrow from other large holders of the cryptocurrency. CEO Michael Moreau (Michael Moro) reported that, since March, the amount of disbursed loans amounted to $553 million.
Some of the major loans were made in Ethereum hedge funds that used these funds into lowering the price of an asset, clarifies the Genesis. But since the beginning of the company’s activities in the course of the second cryptocurrency fell by 80% and interest in the service waned. As of September of all credited funds only 4% is in the air, while a large part of bitcoin.
Moreau also noted that the lion’s share of the funds being used to hedge open in December last year, the positions on derivative markets. According to him, Genesis takes money in debt at 5-7%, and gives your customers under 10-11%. In the future, the company plans to publish quarterly reports on the flow of credit.
It is worth noting that the Genesis in may of this year received a special license Regulations for its activities from the office of financial services of new York (NYDFS).