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- Genesis Capital, a cryptocurrency lending service provider, has an excellent first quarter of 2020.
- According to the reports, the firm has issued $2 billion new loans in the Q1 of 2020, as compared to the previous year Q4 2019, just double its value.
- At the beginning of March, Genesis noticed a massive demand for cash loans from trading desks.
The year 2020 has turned out to be a bizarre year for many due to the Coronavirus pandemic. However, Covid-19 has turned out to be a little lenient for cryptoverse, as trust in cryptocurrencies has increased. Genesis Capital, a cryptocurrency lending service provider, has an excellent first quarter of 2020, the firm has issued $2 billion new loans in the Q1 of 2020.
The first quarter overview
According to the reports, the firm has issued $2 billion new loans in the Q1 of 2020, as compared to the previous year Q4 2019, just double its value. However, the active loan hit the $1 billion all-time high before the equity market sell-off on March 12. It settled at $649 million at the end of March.
Regardless of 9.5% of BTC price drop as compared to the last quarter closer, the active outstanding loans increased by 19.1%.
Moreover, the cash loan composition tumbled in the first quarter of 2020 despite increasing in the last three quarters. The BTC lending yet covers a large portion of Genesis’ total loan portfolio with 44.8%, followed by 36.6% cash loans.
Genesis soon going to announce its latest trading features
However, at the end of March 2020, the crypto ecosystem slid into turmoil. The BTC price fell approximately 50% in one single day on March 12. Genesis stated that it was able to forge through the market chaos.
At the beginning of March, Genesis noticed a massive demand for cash loans from trading desks. This looked to cover the hefty premium of BTC futures against the spot price via buying BTC and selling futures in the spot market. This trading strategy is known as basis trading.
Furthermore, the Vice President at Genesis, Matt Ballensweig, cast light on the Q1 report that the company has faced zero capital losses, zero defaults, and zero felonies amid the market turbulence. The company is working on some exclusive trading features in 2020 and will update in the coming months, he added.
