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Crypto Lending Business Continues to Boom with Genesis Capital Breaking New Record in Q3

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Wed, 10/30/2019 - 15:26
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Alex Dovbnya
Genesis Capital reports about growing demand for cash loans, which are chipping away at Bitcoin's dominance
Crypto Lending Business Continues to Boom with Genesis Capital Breaking New Record in Q3
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Barry Silbert's Genesis Capital, which ventured into lending back in March 2018, has just released a new quarterly report. In Q3, the company managed to rake in a staggering $870 mln in new originations, which represents a 38.1 percent increase quarter-over-quarter (QoQ). 

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Less demand for Bitcoin loans

After taking a closer look at the report, one can find out that the share of USD loans has increased significantly in the portfolio of Genesis Capital (up by 23.5 percent compared to the previous quarter). There is steadily growing demand for cash loans in the Asian region.  

As we mentioned in our Q2 report, there has been and continues to be strong demand internationally to borrow USD. 

The share of active Bitcoin loans has decreased to 50.2 percent. To put this into perspective, it was 68.1 percent in Q1. In sharp contrast to BTC, altcoins loans have grown in popularity in Q3 (sans for Litecoin).

Genesis Capital
image by genesiscap.co

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A new crypto bubble?

Cryptocurrency lending has been growing at a breakneck pace over the past few years, representing a $5 bln industry. By launching right at the outset of the 2018 bear market, Grayscale was able to turn its business into a success right off the bat given that many customers wanted to lend their coins that depreciated in value.                  

However, as reported by U.Today, there are some warning signs of another cryptocurrency bubble, according to a group of Wall Street trading vets. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.