Crypto lender Genesis offered $5.2 billion in new loans in the third quarter of 2020, greater than double its earlier file of $2.2 billion in the previous quarter.
Issued to company debtors reminiscent of hedge funds and buying and selling companies, the loans are primarily denominated in bitcoin (BTC), ether (ETH), bitcoin money (BCH), and money.
In accordance to the U.S. firm’s Q3 Digital Asset Report shared with information.Bitcoin.com on Oct. 30, Genesis grew its lively loans excellent 50% to $2.1 billion from $1.four billion in the second quarter.
Altogether, Genesis has processed a complete of $13.6 billion value of crypto loans because it began its lending enterprise in March 2018.
As a proportion of the complete mortgage portofolio, bitcoin-based loans fell sharply in Q3, tanking to 40.eight% from 51.2% beforehand. BCH loans virtually remained stagnant at four.three% whereas ETH borrowing almost doubled to 12.four%.
“The primary driver of this portfolio shift got here from the influence of liquidity mining on decentralized finance (defi) protocols,” mentioned Genesis.
“We noticed defi rate of interest arbitrage drive important new issuance the place our buying and selling counterparties began actively borrowing ETH and stablecoins to lever up liquidity mining methods. These counterparties, at the similar time, borrowed the related governance tokens reminiscent of UNI, YFI, COMP, and LEND to hedge their future in-kind earnings.”
The lender says it’s seeing huge development throughout all its enterprise traces, together with derivatives and spot buying and selling.
In the assessment quarter, derivatives quantity – each choices and futures – soared 150% to $1 billion from $400 million beforehand. Genesis solely began buying and selling derivatives in Q2 2020. Spot quantity rose about 15% quarter-on-quarter to $four.5 billion, it mentioned.
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