Genesis Global Trading is an over-the-counter crypto trading firm offering services to institutional and accredited investors in the US. One of five firms with a BitLicense, Genesis can broker various crypto trades.
Digital Currency Group (DCG), its parent company, owns CoinDesk as part of their media offering and also has lending subsidiaries including Three Arrows Capital which was taken over by DCG last year and FTX, a cryptocurrency exchange.
Trading
Genesis Global Trading offers investors an accessible and secure platform to trade cryptocurrencies and make a return. However, Genesis only accepts accredited investors who meet specific criteria – these include having at least a minimum annual income of $200,000 (or $300,000 for married investors) as well as an net worth of at least $1 Million.
Genesis saw its spot desk execute $30.8 billion of volume during the fourth quarter of 2021 – marking an 184% increase versus 2020 and increasing onboarded custodial clients by 53% during this quarter.
Genesis Lending Business has seen the percentage of bitcoin loans fall as a percentage of total loan book, while ethereum loans have increased. Genesis lends to hedge funds, quantitative trading firms, crypto exchanges and other crypto lenders; as well as crypto operating companies like bitcoin ATM firms. Unfortunately Genesis is currently experiencing financial difficulty and may file for bankruptcy.
Lending
Genesis provides institutional investors with a complete suite of digital asset financial services for digital assets. Their market data, exchange connectivity, liquidity management and integrated analytics platform help institutional investors identify opportunities in crypto markets quickly and capitalize on them quickly.
The company also specializes in lending and custodial services for digital assets, serving major hedge funds and asset managers as customers. Furthermore, it provides cryptocurrency savings accounts; this service keeps customers’ crypto safe by not constantly online storage while offering same-day access.
Owen remains optimistic about the company despite its current issues, believing it to be well-positioned for long-term success. The bankruptcy filing reinforced his view that crypto lending should take place transparently on chain. As he anticipates, this will make financial systems more resilient against extreme price fluctuations and market turmoil and benefit both traditional finance industries and crypto industries in equal measure.
Custody
Genesis Custody provides institutional investors with a convenient all-in-one platform to deploy large amounts of capital efficiently, with liquidity, security and compliance with regulatory requirements provided for by this service. Client assets are stored safely within Hardware Security Models (HSMs) located across multiple locations globally storing cryptographic keys storing in repurposed nuclear bunkers storing client assets segregated into multiple HSMs for full segregation and compliance with regulatory requirements.
Genesis and Gemini, founded by identical twins Cameron and Tyler Winklevoss, entered into an agreement in December 2020 where Gemini Earn customers could loan their cryptocurrency to Genesis in exchange for interest payments; according to a complaint lodged against Gemini by Earn investors, Gemini acted as agent and withheld an agent fee from any returns paid out by Genesis to Earn investors.
Genesis Global Capital’s lending unit filed for US bankruptcy protection on Thursday, owing creditors billions after being hit hard by market rout that also brought down exchange FTX and lender BlockFi. Genesis had earlier frozen withdrawals amid growing fears of crypto winter.
Investing
Genesis offers users a way to earn a return by lending crypto assets. Unlike traditional prime brokers who can tolerate mismatches between assets and liabilities, Genesis must match loan duration exactly; this requirement poses significant constraints to their operations.
Following the collapse of digital asset exchange FTX, the company’s lending unit halted withdrawals and is under increasing pressure to find alternative sources of funding; reports indicate it has sought $1 billion.
The company also offers custody, which is a cold storage service for digital assets. Unlike a typical wallet, custody uses an offline server which protects against hackers and breaches in security; this type of custody service can only be offered to accredited investors; remember that trading cryptocurrency involves risk, so only invest with money that you can afford to lose!
