Genesis Trading Ceases U.S. Trading Operations
Genesis Trading, the trading arm of Digital Currency Group (DCG), is closing down its trading operations in the United States this month. This decision follows the bankruptcy filing of DCG’s crypto lending firm, Genesis Global Holdco, earlier this year.
Reasons Behind the End of U.S. Trading
According to a spokesperson for Genesis, the company is voluntarily winding down its U.S. trading service for business reasons. They are actively working with regulatory authorities to ensure a smooth discontinuation of services.
An Orderly Discontinuation of Services
Despite previously stating that their trading operation would continue as usual after the bankruptcy of their lending arm, Genesis informed clients via email that all trades must be settled by September 21. Any remaining open accounts will be closed by September 30.
Genesis Trading’s Legacy in the Crypto Industry
Genesis Trading, which launched the world’s first Bitcoin over-the-counter (OTC) trading desk in 2013, has grown to become one of the industry’s largest players. It has provided capital and credit products to prominent digital asset projects, networks, and funds. The company has managed $116 billion in spot volume, held over $14 million in active loans, and served over 1,000 institutional clients. Genesis is licensed by the New York Department of Financial Services (NYDFS).
Regulatory Pressures and the Exodus of Crypto Firms
Genesis is not the only crypto firm to withdraw from the United States in the face of regulatory pressures. Other notable firms, such as Nexo and Bittrex, have also made similar decisions in the past year.
Coinbase Steps Up in the Institutional Lending Space
With Genesis and BlockFi exiting the market, Coinbase has taken the opportunity to fill the institutional lending gap. The company recently raised $57 million to launch a platform for over-collateralized crypto lending. This service allows Coinbase to offer secure loans to institutional clients by receiving crypto collateral from its customers.
Hot Take
The closure of Genesis Trading’s U.S. operations highlights the challenges faced by crypto firms in navigating regulatory environments. However, Coinbase’s entrance into the institutional lending space demonstrates the resilience and adaptability of the industry.
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