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Crypto Lending Firm Genesis Capital Handled More Than $1.1 Billion in 2018

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Lending company Genesis Capital handled $1.114 million in borrows and lends in 2018, according to the Digital Asset Lending Snapshot for Q4 2018, which was released just recently.

At the end of Q3 2018, the firm published its first Digital Asset Lending Snapshot, which indicated that Genesis Capital only handled $553 million at the time counting from the beginning of its activity in March 2018. Thus, the company settled that “Q4 loan originations increased more than 100% in the final three months of 2018 compared to the prior six-month period.”

The company added that, despite a 44 percent price dip in Bitcoin (BTC), its loan book rose to $153 million in active loans, up $20 million from the third quarter. In addition, according to the firm, the most active months to date were November and December 2018, since it “saw new hedge funds and trading firms utilizing ‘spot’ borrow.”

In the final quarter of last year, the company also introduced fiat currency lending with crypto collateral. The firm explains that this new service has been established in response to demand from its institutional patrons, claiming that:

“Long-term digital currency investors with appreciated assets can borrow cash against their crypto holdings without triggering a taxable event.”

The company noted “Ethereum (ETH) borrowing more than doubled since Q3 but still only accounts for less than 10% of our loan book, well below the highs seen in Q1 and Q2.”

Lenders in the cryptocurrency space are toughing out the recent crypto bear market a lot better than others. Michael Moro, who is the chief executive officer of Genesis Capital, relayed that “the bear market has certainly helped, at least has fueled the growth.”

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