According to a recently released Digital Asset Lending Snapshot For the Q4 2018, it is found that Genesis Global Trading, a cryptocurrency lending company has dealt in total of $1.114 billion in borrows and lends last year.
When the company brought out its first Digital Asset Lending Snapshot at the end of Q3 2018, it stated that the Genesis Global Trading was responsible for processing just $553 million when it started its activity in March 2018. Concluding this, the company found that “Q4 loan originations increased more than 100% in the final three months of 2018 compared to the prior six-month period”.
In fact, the company even asserted that in active loan its loan book raised to $153 million which was up from $20 million from the 3rd quarter regardless of 44% price drop in Bitcoin. Well, not just this but the company also claimed that November and December 2018 were noted to be the most in force months because it reportedly saw trading firms and new hedge funds utilizing “SPOT” borrow.
Now, talking about the last quarter of 2018, the company was seen instigating fiat currency lending with crypto collateral. To this, the firm stated that the event took place and this new service was taken into consideration following demand from its institutional clients, which stated that:
“Long-term digital currency investors with appreciated assets can borrow cash against their crypto holdings without triggering a taxable event.”
Also, the company even stated that since the time of Q3, Ethereum was borrowing more than doubled and then also it accounts for 10% lesser of the loan book, which is less than the highs seen in Q1 and Q2.
Let’s just take a break from what happened last year. According to reports, at the starting of the current month, it was officially announced by the lenders in the cryptocurrency industry that the current crypto bear market is far better than the others. “The bear market has certainly helped, at least has fueled the growth”, mentioned Michael Moro, the Chief Executive Officer of Genesis Global Trading at that time.
Recently another news broke talking about Mike Novogratz’s crypto merchant bank Galaxy Digital is raising somewhat $250 million in order to propose loans to crypto-related firms.