Genesis OTC Trading Desk and Crypto Lending Arm are still moving money around as usual, indicating their business remains operational even though their parent company has filed for bankruptcy protection.
Genesis and Gemini, owned by Cameron and Tyler Winklevoss of The Winklevoss Twins, have been charged by the Securities Exchange Commission with selling securities without being registered as brokers. Through its Gemini Earn program, investors could lend digital assets for interest-bearing loans.
Genesis offers a variety of services
Genesis offers an extensive array of digital asset trading, lending and custody services designed for institutional investors and market makers. Their monthly trades total billions in volume each month while they access deep pools of global liquidity through secure cold storage solutions as well as hybrid technologies for secure cold storage solutions.
The filing comes amid widespread fallout from FTX’s collapse, with crypto companies scrambling to safeguard themselves against losses. Former CEO Sam Bankman-Fried of FTX is accused of misappropriating funds from millions of customers on his platform and diverting them to Alameda hedge fund as his personal stash.
Genesis issued a statement explaining that they have begun consultations with advisors for its creditors and Digital Currency Group (DCG), to assess how best to preserve assets. Furthermore, Genesis confirmed that their crypto trading and custodial businesses will remain unaffected by bankruptcy filing.
They offer trading
Genesis crypto provides trading services for digital assets. Their platform boasts high-quality trading experiences and deep liquidity for both spot and derivative markets, plus white glove execution and custody services for clients’ assets to meet strict compliance and anti-money laundering regulations.
Genesis crypto also offers lending and staking services, enabling users to lend their crypto for yield farming by lending it out at interest. Their assets are stored safely by Genesis in a vault, providing regular updates of any returns.
As a result of FTX’s failure, Genesis’ lending arm has stopped withdraws and begun to search for cheaper sources of financing to protect itself. Genesis is owned by Digital Currency Group which also owns CoinDesk and Grayscale Investments; whether these other businesses will be affected remains unclear but Genesis has assured customers they are working hard to return operations as quickly as possible.
They offer lending
Genesis is one of the world’s largest digital asset lenders, offering investors the ability to trade derivatives on its platform and offering cold storage – where users can keep their digital assets offline from any potential internet disruption – in addition to featuring an informative glossary for crypto terms on their website.
Genesis initially reached a peak loan volume of $50 billion in 2021, yet has seen its lending volumes drastically decrease and been unable to replace lost funds resulting in losses for investors.
Genesis Financial Holdings Limited recently suspended Earn redemptions and reduced its team by 20%, raising questions regarding its customers’ funds as well as its ability to meet its debt obligations owed to Three Arrows Capital and Alameda Research of bankrupt crypto exchange FTX; additionally it maintains relationships with stablecoin maker Tether; this development has caused considerable concern among crypto investors.
They offer custody
Genesis Mining Services are one of the world’s premier mining services, enabling users to mine cryptocurrencies like Ethereum and Bitcoin without incurring upfront hardware purchase and maintenance costs as well as electricity bills related to mining. By choosing Genesis over other mining solutions, users save from large upfront hardware purchase/maintenance expenses as well as electricity bill surprises associated with mining cryptos such as these.
Last year, Genesis loan originations increased six-fold and their outstanding lending portfolio increased 227% due to strong consumer optimism surrounding mainstream crypto adoption. This phenomenal surge can be attributed to positive sentiment analysis.
Genesis has seen strong performance, yet has experienced a lack of liquidity and suspended withdrawals due to market uncertainty. Furthermore, they are involved in a legal dispute with Gemini which is owned by the Winklevoss twins.
Genesis recently announced its plan to address these challenges by purchasing London-based custodian Volt. This acquisition will allow Genesis to provide comprehensive institutional digital asset financial services, including custody.