In the third quarter of 2020, Crypto lender Genesis provided $5.2 billion in new loans, more than double its previous record of $2.2 billion in the preceding quarter.
The loans are typically denominated in Bitcoin (BTC), Ether (ETH), Bitcoin (BCH), and cash to corporate borrowers, such as hedge funds and mining companies.
According to the U.S. company’s Q3 Digital Asset Report shared with news.Bitcoin.com on 30 October 2020, Genesis grew its active loans outstanding 50% to $2.1 billion from $1.4 billion in the second quarter. Altogether, Genesis has processed a total of $13.6 billion worth of crypto loans since it started its lending business in March 2018. As a percentage of the total loan portfolio, bitcoin-based loans fell sharply in Q3, tanking to 40.8% from 51.2% previously. BCH loans almost remained stagnant at 4.3% while ETH borrowing nearly doubled to 12.4%.
“The main driver of this portfolio shift came from the impact of liquidity mining on decentralized finance (defi) protocols,” said Genesis.
In the review quarter, derivatives volume – both options and futures – soared 150% to $1 billion from $400 million previously. Genesis only started trading derivatives in Q2 2020. Spot volume rose about 15% quarter-on-quarter to $4.5 billion, it said.