Genesis Trading

Genesis Provides a Single Point of Access for Digital Asset Markets

Genesis launched the first U.S. OTC bitcoin trading desk in 2013. Since then, they’ve grown to facilitate billions in monthly digital currency trades, loans and transactions. The team provides unparalleled access to deep pools of global liquidity throughout the digital asset ecosystem.

Trading

Complete large orders rapidly and reliably. Genesis' OTC digital asset trading firm is regulated as a securities broker-dealer with the SEC and FINRA.

Lending

Lend and borrow digital assets, and tap into alternative liquidity for hedging, speculation and working capital needs. Terms designed for institutional funds and market makers.

Custody

Custody assets utilizing the latest breakthroughs in secure cold storage and MPC hybrid technologies. Comprehensive digital currency insurance on accounts.

Comprehensive support for institutions worldwide

Genesis has counterparty relationships in over 50 countries around the globe. They combine unmatched liquidity and expertise with strong regulatory compliance.

Genesis provides institutional investors with an all-in-one solution to put substantial amounts of capital to work. Services include secure, discreet buying and selling, borrowing and lending in large sizes over fixed-terms, custody services to secure assets, and screening to ensure KYC and AML requirements are met.

“Genesis is one of the market leaders serving institutional clients.” - Forbes

Genesis launched the first over-the-counter bitcoin trading department in the USA in 2013. Since then, the capital has grown to make transactions, loans and transactions in digital currency worth billions of dollars every month. The team provides unprecedented access to deep pools of global liquidity across the entire digital asset ecosystem.Genesis Global Trading is a full-service brokerage company specializing in digital assets.Genesis Global Trading is a full-service brokerage company specializing in digital assets.

The Genesis Trading derivatives division shows strong performance, which continues to grow: the volume of derivatives trading in the last quarter amounted to $ 12.7 billion, an increase of more than 50% compared to the previous quarter.

"There was a high demand for hedging tools, which were necessary in order to express very specific ideas in cryptocurrency trading. The most correct approach here is to use derivatives - put options, call options and forward contracts," says Global.Genesis Trading saw the share of bitcoin in its loan portfolio drop, mainly due to demand for liquidity mining on DeFi protocols.Decentralized finance (DeFi) reshaped Genesis Capital’s portfolios over the summer.

The firm, owned by CoinDesk parent company Digital Currency Group, saw the share of bitcoin (BTC, -2.40%) in its loan portfolio drop as a percentage of total loans. The share of ether loans increased by five percentage points to 12.4% of the loan book quarter-over-quarter. (To be clear, loans across asset classes increased quarter-over-quarter but ethereum (ETH, -4.00%) loans now take up a larger slice of the pie.)According to the lender’s report, this was mainly due to liquidity mining on DeFi protocols such as Compound, Aave and Uniswap. DeFi interest rate arbitrage drove Genesis clients to borrow ETH and stablecoins to “lever up liquidity mining strategies,” the company wrote.

“We haven’t seen it to this degree,” CEO Michael Moro said of previous quarters’ ETH-to-BTC ratio. “As a percentage, BTC loans just didn’t grow fast enough to keep up with the other coins.”

The clients who are lending their assets out through Genesis are high-net-worth individuals, hedge funds, family offices and other asset managers, and they generate returns of 5% to 13% on those loans, Moro said.

Firms that borrow from Genesis are hedge funds, quantitative trading firms, crypto exchanges, other crypto lenders and crypto operating companies such as bitcoin ATM firms. Active loan originations at the firm increased by 50% to $2.1 billion in the third quarter, which was less than the 118% quarter-over-quarter increase that Genesis saw at the end of the second quarter because the second quarter increase had come after the March "Black Thursday" crash. The lender also saw a record $5.2 billion loan originations in the latest quarter, more than doubling the $2.2 billion for loan originations in the second quarter.

Genesis’ Crypto Lending Rebounds in 2Q; Firm Acknowledges Unsecured Loans

The firm is also soon launching an institutional lending API for exchanges and other firms that want to offer yield on crypto deposits to their retail customers. The first exchange to use the service will be DCG-owned Luno, and there are five or six other exchanges in the pipeline, Moro said.

Total trading volume in the third quarter was $4.5 billion, down from $5.25 billion in the second quarter but up by 285% from the third quarter last year. Around 90% of spot trading transactions and 30% of spot trading volumes happen through Genesis Prime’s smart-order routing engine, Moro said.

- Genesis Trading Buys Crypto Custodian Vo1t in Bid to Become Prime Broker.

The firm is also aiming to offer agency trading or aggregated access to exchanges with passthrough execution, from about a dozen exchanges.

Genesis also saw $1 billion in derivatives trading total volume, which was up from $400 million in the second quarter.

In the near future, Genesis also plans to offer capital introduction for family offices seeking crypto hedge funds that have the strategies, fee structure and asset exposure to fit their investing needs.