Genesis Q3 report shows continued growth in crypto lending, trading and custody

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Leading crypto broker saw record levels of activity in third quarter

Q3 activity overtook 2020, the best year in company history

In the first nine months of 2021, Genesis completed nearly $ 200 billion in crypto transactions

Genesis remains the largest crypto lender with cumulative loan origination exceeding $ 100 billion since its inception

Genesis, a digital asset industry pioneer and leading digital currency broker, today released its Q3 2021 Market Observation Report, which highlights the main trends in the institutional digital asset markets. The report shows that in a quarter marked by the acceleration of the march of traditional finance in the crypto markets, a market rotation towards Layer 1 (L1) tokens and a growing institutional interest in DeFi , Genesis saw growth in trade, loans and custody, delivering its strongest quarter to date. The report also shows that the third quarter focused on restoring market stability, as well as resuming risk-taking in derivatives markets.

The highlights of the quarter for cryptocurrency lending, trading and custody are as follows:

  • Loan origination reached $ 35.7 billion, up more than 586% year on year and 40% compared to Q2 2021.

  • Spot trading increased by more than 450% compared to the third quarter of 2020.

  • The notional volume of derivatives traded increased more than 12 times year-on-year and nearly 50% in the quarter.

  • The integrated custody clientele increased by 47% compared to Q2 2021 and the number of assets supported increased by 50%.

“The growth we have seen this quarter in Genesis underscores the strength of our premier service offering,” said Michael Moro, CEO of Genesis. “A growing number of institutional investors are seeking a full range of crypto products and services, and Genesis is quickly becoming a partner of choice.”

The Genesis Q3 2021 Market Observations report provides a comprehensive overview of major market activities with insights derived from prime spot trading, derivatives trading, lending, custody, treasury and brokerage activities. To read the full report on Q3 2021 Market Observations, click here.

Crypto loan

In the third quarter, Genesis ‘loan office made $ 35.7 billion in new loans, up from $ 25.0 billion in the second quarter, setting a record for the company and solidifying Genesis’ position as the largest major crypto lender in the industry. Cumulative originations have exceeded $ 100 billion since the launch of the Genesis lending business in March 2018. Outstanding active loans increased 34% in the quarter to $ 11.1 billion from $ 8 billion. , $ 3 billion in the second quarter. While BTC loans have increased overall, the composition of the loan portfolio has continued to turn. BTC loans accounted for 32.4% of outstanding loans, up from 42.3% at the end of the second quarter, while ETH loans increased to 32.0% of the total portfolio, from 27.9% at the end of the second quarter. second trimester.

Spot trading and derivatives

As demand for BTC continued to decline during the quarter, the BTC bureau’s weighting increased as the anticipation of listing the first US BTC ETFs rekindled market interest. At the end of the third quarter, BTC accounted for around 61% of Genesis’ OTC trading activity, up from 47% in the second quarter. With the growing adoption of DeFi platforms, Genesis has also seen a greater appetite for borrowing ETH from institutions to post as collateral or liquidity pairs in DeFi applications. Additionally, throughout the third quarter, the L1 alternatives continued to attract more capital, leading to the development of new decentralized applications. Many institutions explored the yield opportunities in L1s, which often offered attractive rates for stablecoin and ETH / BTC pairs.

While the rapid deleveraging in the second quarter resulted in a sell-off from peak to trough of over 50%, the third quarter focused on restoring market stability, which was accompanied by ” a resumption of risk-taking on derivative markets. Open interest on listed options started the quarter at $ 5 billion and more than doubled to exceed $ 10 billion by the end of September. Genesis saw a surge in derivatives trading activity in the third quarter that peaked with more than $ 12.7 billion notional in bilateral OTC, blocks traded and exchange traded volumes, representing growth of about 50% quarter to quarter. This is a new record for the Derivatives Office, overtaking Genesis ‘strong first quarter and reflecting a resumption of institutional activity in the market, alongside a broadening of Genesis’ counterparty base.


Genesis Custody also had a strong quarter with a 47% increase in the number of on-board customers in the third quarter compared to the second quarter. Genesis facilitated $ 450 million in transactions and added seven new supported assets: SOL, BAT, GRT, MKR, YFI, REN and LPT.

Growth in custody operations and supporting assets is a direct result of customer feedback. Hedge funds, family offices, venture capitalists and corporations have demanded more than just reliable custody; they want tailor-made solutions and greater productivity from their owned assets. Genesis’ integrated lending and trading desk enables the leading crypto broker to offer extensive coverage across supported assets and innovative services such as ZEN staking for clients, which Genesis began in the third quarter.

Derar Islam, COO of Genesis, added: “As evidenced by the execution of the first two trades ever printed in the Bitcoin BTIC product listed on CME, we continue to provide our clients with innovative ways to access the asset class and we are well positioned to continue this momentum into the fourth quarter and beyond.

About Genesis

Genesis is a premier digital currency brokerage service providing a single point of access to a selection of qualified individuals and global institutional investors. Genesis combines unparalleled operational excellence, a seamless user experience, and world-class customer service to deliver the full range of services global investors need to manage their digital asset portfolios.

The company provides sophisticated market participants with a fully integrated platform to trade, borrow, lend and hold digital assets, creating new opportunities for returns while increasing capital efficiency for counterparties.

Genesis is a wholly owned subsidiary of Digital Currency Group (DCG), one of the largest private investors in blockchain and digital asset companies.

For more information on Genesis, please visit genè and follow @GenesisTrading on Twitter.

Marc Yaklofsky

[email protected]

Source: Genesis

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