Odaily Frontline｜Crypto lending service provider Genesis issued $5.2 billion in new loans in the third quarter

This article comes fromThe Block, by Yogita Khatri

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• , by Yogita Khatri

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Crypto lending service provider and trader Genesis released its third-quarter results.

All of the company's businesses posted strong growth.

Crypto lending and trading company Genesis continues to grow.

According to a report from Genesis on Friday, the company originated $5.2 billion worth of new loans in the third quarter of 2020, more than doubling its previous record of $2.2 billion in the second quarter.

Genesis began its lending business in March 2018 and has disbursed loans worth $13.6 billion since then. Genesis said the recent increase came from increased issuance of cash and altcoin loans, as well as a “modest” increase in the notional value of outstanding crypto loans.

Genesis active loans outstanding rose 50% to $2.1 billion in the third quarter, compared to $1.4 billion in the previous quarter. An outstanding loan is the balance that the borrower is obliged to repay.

Since Genesis facilitates lending, it also allows others to lend through its platform. As of September 30, 2020, there were 165 independent lenders (lenders) on Genesis, an increase of 47.3% from the previous quarter. "The total monthly interest expense for September represented more than 20% of all interest expense for the subsequent 12-month period," the company said.

Growth in bank deposits also helped, Genesis said. "Banks have to originate loans somewhere; prime brokerage clients are a good place to deploy excess capital during the coronavirus pandemic," the firm explained. Those clients, who have worked closely with Genesis in the past, will now be shorting CME basis trades. Excess USD and BTC are lent to Genesis, ultimately adding to our asset base as well.”