This week the institutional over-the-counter (OTC) digital currency service, Genesis Global Trading, announced it’s creating a lending subsidiary called Genesis Capital that will offer cryptocurrency loans for a fixed period of time.
Market Maker Lending Services
Genesis Capital will be a new lending firm for institutional investors that provides the opportunity to borrow a wide variety of digital currencies. The new subsidiary believes individuals and businesses will need cryptocurrency loans so they can deploy market making strategies, short spot, or use as additional capital to jumpstart a project. As the digital asset scene continues to grow, Genesis Capital thinks it’s time to strike the iron while it’s hot.
“We believe now is a great time to offer an institutional-focused lending service because it will increase general liquidity in the marketplace, encourage new financial institutions to participate in a two-sided market and increase the working capital that companies use to scale their digital currency-centric businesses,” explains Genesis Capital’s announcement.
Genesis Capital can now offer borrow on bitcoin, ether, ether classic, litecoin, ripple, bitcoin cash, zcash and other digital currencies in sizes from $100,000 upwards over fixed terms.
Up to $5 Million for Two Week to Six Month Loans
The company says being an existing cryptocurrency institutional market maker it can envision hedge funds, both spot and derivative brokerage services, and other use cases for large loans. Interested firms can fill out a form that asks for digital currency lending amounts between $100,000 to $5Mn+ USD worth of digital currencies according to the website’s submission page.
Genesis Capital says it plans to leverage its own OTC services and describes one example of lending a large block short-sale position. Borrowers will have access to Genesis Trading’s OTC platform after completing the onboarding process and will be able to initiate shorts utilizing various cryptocurrencies.
The firm’s website also details it is a regulated company that follows Federal MSB/Fincen regulatory statutes. Loan durations can be between two weeks to six months and the company explains it takes USD collateral. After the onboarding is complete Genesis says the digital currencies will be delivered “straight to your wallet.”
What do you think about Genesis Capital’s OTC-style loan service for institutional investors? Let us know in the comments below.
Images via Pixabay, and Genesis Capital.
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Author: Jamie Redman