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Genesis Global Trading launches cryptocurrency lending business

Genesis Global Trading, an institutional trading firm offering two-sided liquidity for digital currencies, has launched its institutional lending business – Genesis Global Capital.

The new subsidiary will allow institutional investors the opportunity to borrow bitcoin, ether and other cryptocurrencies in sizes from $100,000 upwards over fixed terms (ranging from two weeks to six months depending on the business need).

“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,” the company said.

Genesis Capital said that “active hedge funds and other institutional investors can take advantage of this [lending capacity] as a way to either hedge total portfolio risk or take speculative short positions.” In addition to portfolio management, the company also pointed out other use cases:

“As businesses increasingly build products and services around bitcoin, they may need to finance their daily operation by borrowing bitcoin or other currencies. An example of this today would be remittance companies that need to make immediate settlements to their customers, but don’t want to buy a large balance of bitcoin and hold that risk on their books.”

According to CoinDesk, Genesis Capital has already attracted prominent clients including BlockTower Capital, an existing client of the parent trading company, and cryptocurrency trading firm DV Chain.

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