Genesis, an industry pioneer and leader in digital currency trading and lending, today released its Digital Asset Lending Snapshot for Q1 2020. Amid a quarter marked by COVID-19-driven volatility, Genesis saw its best quarter ever, adding more than $2B in new loan originations. This more than doubles the previous record of $1B set in Q4 2019 and up 354% from the first quarter of 2019. Cumulative originations increased 46.6% from Q4 2019, marking an eighth consecutive quarter of growth and bringing total originations to nearly $6.2B since Genesis launched its lending business in March 2018.
Genesis reached more than $1B in active loans in February before settling to $649M at the end of March while experiencing no defaults, capital losses, or delinquencies during the quarter. This is due to Genesis’ dynamic risk management methodology which includes collateral; calculated exposure limits based on quantitative and qualitative due-diligence; margin management; ongoing transparency and health updates; and macro hedging tools.
“COVID-19 provided a natural stress test in which Genesis proved its overall resilience,” said Michael Moro, CEO of Genesis. “Despite being in the epicenter of the global pandemic and experiencing first-hand the volatility of the market, we have never felt better about our business and our leading position within the digital asset lending space.”
Despite increasing the last three quarters, cash loan composition fell in the first quarter of 2020, driven by the broad market selloff and significant deleveraging. However, BTC and cash lending still dominated Genesis’ loan portfolio, comprising 81.4% of the overall value.
To read the entire Digital Asset Lending Snapshot and learn how Genesis navigated “The Great Deleveraging,” click here.
Genesis is a worldwide leader in over-the-counter digital currency trading and lending, providing deep pools of liquidity to institutional investors and high net worth individuals. A broker-dealer registered with the SEC and FINRA, and a BitLicense holder with the New York State Department of Financial Services, Genesis Global Trading is an industry pioneer and market maker that has facilitated billions of dollars in transactions since 2013.