Genesis Active Loans fell by 66 % in the second quarter

Genesis Active Loans fell by 66 % in the second quarter

New loans from the Lending Desk of Genesis declined by 9 % in the second quarter of this year, the company announced on Wednesday, while the outstanding active loans decreased by 66 % compared to the same period last year.

Genesis introduced the first over-the-counting bitcoin trade table in the United States in 2013 and enables monthly crypto trades, loans and transactions in billions.

The company's outstanding activities were $ 4.9 billion on June 30-compared to $ 14.6 billion at the end of the first quarter. The industry has been recorded by challenging credit markets in the past three months.

US dollars and equivalents made up almost 54 % of the genesis loan book, compared to 48 % at the end of the first quarter, in the middle of what the report described as "flight into quality".

Bitcoin is now more in the book of Genesis, since the BTC loan weight has risen from quarter to quarter 28.7 % to 30.4 %. The weighting of ether shrank from 16 % in the first quarter to 11.4 % at the end of June, which reflects the relative price sub -performance from April to June.

The credit agent from Genesis generated around $ 40.4 billion-a decrease of 9 % compared to the previous quarter-since the crypto loan allocation has decreased significantly in recent months. Most of these loans took place in April and May, when collective crypto market capitalization collapsed by more than 40 % of $ 2.2 trillion to less than $ 1.3 trillion.

A Genesis spokesman refused to comment beyond the report.

The Digital Currency Group absorbed Genesis loss

This year's second quarter will probably be remembered as "one of the most dramatic in the history of the crypto ecosystem", the report says.

Three Arrows Capital (3AC) announced for the first time that it was faced with a possible bankruptcy in June after a liquidation of $ 400 million. 3ac suffered a big blow with the collapse of Terras StableCoin in May due to considerable investments in the luna token of the ecosystem.

Although Genesis had credit engagements compared to 3AC, the Genesis-Muttergesellschaft Digital Currency Group took over liability for losses from these loans, as the company stated in the report on Wednesday.

Simon Jones CEO and co-founder of Voltz labs said Blockworks said that the falling loan from Genesis reflects what he called the "cefi collapse" and macroeconomic factors. The centralized financial provider Celsius, for example, initiated insolvency proceedings last month after exposing withdrawals and transfers in June.

"Some of these credit companies are put under pressure on both sides," said Jones. "If you receive capital from traditional financing ... the interest rates, and then the returns sink at Defi, which basically means that the interest that you can invoice a borrower should decrease."

Although the new loans and outstanding active loans were declining from Genesis, the company's treasury acted around $ 17.2 billion in the second quarter-an increase of 51 % compared to the previous quarter. His derivative desk was traded at $ 26.6 billion, which corresponds to a decrease of 4 %.

Genesis Custody processed the highest number of quarterly transactions, an increase of 8 % compared to the first quarter. The company also recorded an increase in the number of deposit customers by 20 %in the reporting period.

. .

The contribution Genesis Active Loans Droped 66% in Q2 is not a financial advice.