Genesis Global Trading Inc. has introduced a new subsidiary called Genesis Global Capital, a lending business. Essentially, this new company will allow business and investors to borrow cryptocurrencies of as much as $100,000, and even more for fixed terms covering a period of two weeks to six months.
The cryptocurrences to be used in these transactions will be bitcoin, ether, ether classic, XRP, bitcoin cash, and zcash, to name a few. Said Genesis Capital in their press release, “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.”
With Global Capital, Genesis envisions a business environment where investors could maximize their lending capacity in order to “hedge total portfolio risk or take speculative short positions.” They are also, of course, looking into other ways and means by which they can make the most out of the service. One example of this by letting remittance companies settle with their customers more efficiently without necessarily having to “buy a large balance of bitcoin and hold that risk on their books.”
DV Chain, a crypto trading firm, has already partnered up with Genesis Global Trading on this front, with their Chain CEO Garrette SEE saying that “The majority of trading volume in several cryptocurrencies is denominated by bitcoin, which has created a need for a bitcoin lending market.” Other companies who have expressed interest in working with Genesis Capital include BlockTower Capital.