Crypto Lending On The Rise: Genesis Capital Issued $553 Million in Crypto Loans Since March 2018

Crypto loans appear to be in high demand. This somewhat unusual business model is generating a lot of excitement. Genesis Capital has seen the number of loans issued through its platform increase significantly. Over $550m worth of cryptocurrency has changed hands over the past seven months.


Genesis Capital is on the Right Track

In March of 2018, Genesis Global Trading, an OTC cryptocurrency trading firm, launched its crypto lending platform in response to growing customer demand. Through its affiliate company, Genesis Global Capital, institutional clients are able to lend and borrow a variety of cryptocurrencies. The success to date has been far more spectacular than anyone could have predicted.

Genesis Capital has originated more than $550 million in crypto loans

According to the company’s most recent report, 2018 has proven to be quite prosperous. To date, Genesis Capital has originated more than $550 million in crypto loans. Their clients are all institutional-level, further confirming the demand for exposure to Bitcoin and other cryptocurrencies. Interest in Ethereum is on the decline, whereas XRP, Litecoin, and Ethereum Classic have become a lot more popular.

Nearly a dozen cryptocurrencies are supported on the platform, though Bitcoin still remains the go-to asset. It is the most widely used asset and benefits from a very strong market position. Surprisingly, most borrowers use BTC for working capital needs. Ethereum is primarily in demand for short interests. Other trading firms also rely on Genesis Capital to borrow Bitcoin. This is primarily due to a boom in derivative markets.

Future of Cryptocurrency Lending

The Future of Cryptocurrency Lending

Despite falling prices for all cryptocurrencies this year, Genesis Capital shows there is still a bright future ahead. Unlike traditional financial assets, Bitcoin and altcoins are global. As such, requesting and extending loans around the world becomes a lot more straightforward.

Hedge funds have begun paying more attention to this company as well. This shows interesting things are bound to happen across the cryptocurrency industry. Moreover, it shows these companies believe digital assets are here to stay. Whether in the form of lending or something else entirely, the demand appears to be genuine.

As one would expect, cryptocurrency lending can serve many purposes. September was a monthly primarily focusing on operating work capital. Trading and arbitrage both remain incredibly popular as well. Speculating and hedging are on the decline a bit, yet still present. Genesis Capital is confident derivative markets and their products will continue to mature. This will lead to even more demand for these types of loans in 2018 and beyond.

Do you think that the cryptocurrency lending market will continue to grow? Let us know in the comments below.


Images courtesy of Shutterstock, Genesis Capital

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Novogratz Addresses Tether’s Shortcomings, Roubini’s Remarks

Mike Novogratz, the founder of Galaxy Digital Holdings and an avid supporter of cryptocurrencies, has said that Tether has nobody but itself to blame for the recent issues they have been facing.


Novogratz Addresses Recent Tether FUD

Bitcoin bull Mike Novogratz believes that Tether (USDT) needs to be more transparent. He was speaking recently at a conference in Frankfurt, and his observations were published in an article on Bloomberg.

The billionaire investor, founder of Galaxy Digital Holdings, and former partner at Goldman Sachs said, “I think Tether didn’t do a great job in terms of creating transparency.” He added that the digital asset will need time to regain the lost trust.

Tether

Tether, a U.S. dollar-backed stablecoin, experienced panic selling earlier Monday based on rumors that many leading exchanges were going to delist the coin. Traders and investors dumped their USDT holdings in favor of Bitcoin and other stable currencies like the Circle-backed USD Coin (USDC) and Gemini USD (GUSD). This led to a 7% drop – from USDT’s Sunday high of $0.995 to a low of $0.925 on Monday.

“The concept of stablecoins make sense,” Novogratz said, adding that stablecoins have more of a transactional character than other cryptocurrencies like Bitcoin. He further mentioned that he would prefer a stable coin like GUSD as it is backed by a U.S.-based bank like State Street to maintain its backup reserves.

Tether earlier had a banking relationship with Noble, a Puerto Rico-based bank, which recently ran out of cash and is likely to be put up for sale. As reported by Live Bitcoin News, Tether is known to have withdrawn its cash reserves from Noble and switched over to Bahamas-based Deltec Bank.

Seeking to clarify some of the statements made in the Bloomberg article, Novogratz later tweeted:

Also Talks About Roubini’s Senate Remarks

Responding to the recent attack on cryptos by economist Nouriel Roubini during a Senate hearing, Novogratz said that the rise in custodian firms will help give the asset class a boost. He added that these firms have the potential to replace credit card companies. Roubini had called digital money, “the mother of all scams and (now busted) bubbles.”

“You can agree with Roubini on several points, but he is judging cryptocurrencies as if it was a PhD student. Cryptocurrencies are third- or fourth-graders, so still in need to mature,” Novogratz said.

Nouriel Roubini

Observing that the bubble last year was the result of speculation by retail investors, he argued that the investments into cryptocurrency infrastructure and custodian services will help the industry mature.

Novogratz, along with Goldman Sachs, earlier this week announced the investment of over $15 million in BitGo’s custody services arm. He also referred to Fidelity setting up a subsidiary for custody of digital assets.

He believes that custodians may also take over a significant part of the business currently done by credit card companies like Mastercard or Visa. “The transaction costs are much cheaper,” he said, adding “The least the proliferation of custodians will do is drive fees much lower.”

With growing competition from USDC and GUSD, which are more open in their operations, Tether needs to bring transparency in its working if it must maintain its current lead in the stablecoin space.

Do you agree with Novogratz that lack of transparency is hurting Tether? Let us know in the comments below.


Images courtesy of Twitter/@novogratz and Shutterstock.

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U.S. Job Market Thrives as Blockchain Companies Continue Hiring Spree

The U.S. job market is undergoing some noteworthy changes. A positive trend has been established over the past few months as the number of unfilled jobs has increased. Emerging technological trends are playing a part as the Bitcoin and blockchain job market is increasing in popularity.


A Booming U.S. Job Market

Several signs indicate whether a nation’s economy is doing well. The number of available job openings is one such key factor. In the United States, that metric is getting a lot of attention. Over 7 million unfilled job openings were present in August of 2018. A healthy job market shows there is still plenty of financial growth ahead for U.S. companies.

The blockchain industry is helping push a boom in the U.S. job market.

One notable contributor is the Bitcoin and blockchain industry. Job market listings pertaining to this industry have increased by 300% compared to the same period in 2017. That is a promising sign. It also confirms the United States should play an increasing role of importance in this growing industry. Just over 1,700 positions were waiting to be filled in August of this year.

These findings come at a crucial time for the cryptocurrency industry. An ongoing Bitcoin price decline for the majority of 2018 has made a lot of people wary of cryptocurrency. Yet many businesses are seeing the potential value of distributed ledger technology. The number of listings on the U.S. job market indicates companies are still in the process of expanding their presence into this particular ecosystem.

Filling the Right Positions

One interesting trend is the growing demand for Bitcoin and blockchain software engineers. A number of companies are eager to hire such candidates, as well as other blockchain positions. As an increasing number of universities around the world are now starting to offer courses pertaining to this topic, that part of the job market will continue to expand. It also shows how difficult it can be for companies to find, much less retain, talented staff during this crucial growth stage.

blockchain

One of the major companies on an active hiring spree is IBM. The technology giant is currently exploring numerous blockchain ventures. ConsenSys, a renowned company in the cryptocurrency industry, is also looking to fill many different positions. It is also worth noting these kinds of jobs are in prime demand. The average pay is over 60% higher compared to the median base pay on the U.S. job market.

Not all companies in this industry are successful, though. A proven track record does not warrant future growth. Exchange providers are going through a rough patch right now. Given the growing competition on the market, that is not entirely surprising. This is a growing pain the blockchain and cryptocurrency industry will have to go through prior to entering the next stage of adoption.

Do you plan on getting a job in the blockchain industry? Let us know in the comments below.


Images courtesy of Shutterstock.

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