Genesis today announced that the fourth quarter was record breaking period for the digital currency trading and lending firm, which originated more than $1.1 billion in loans and borrows for its institutional clients, marking seven quarters of consecutive growth for the firm. Total active loans are up to $545 million, a 23% increase from the third quarter figure of $450 million, it reports.
Genesis’ active loan book and originations increased despite a roughly 14% decline in the price of bitcoin, as well as other digital currencies, demonstrating a growing interest in the asset class that remains independent of digital currency price movement, the firm says in a statement.
While bitcoin still attracts the largest amount of interest, the share of USD borrowing continued to climb, reaching 37% of the company’s active loan portfolio in Q4 2019, up from 31% in the prior quarter. In particular, international investors showed strong demand for USD borrowing, which is often translated into demand for stablecoins due to frictions from the traditional banking sector. Cash lenders continued to enjoy high yields due to strong global economic conditions, which create a premium on large pools of liquidity, says the statement.