Crypto lending is back in vogue. Lending firm Genesis said in a report Tuesday its business saw record volumes this year, presumably as the DeFi market surged ahead and institutional demand for crypto increased.
The firm said that in Q2 this year, its lending business added over $2.2 billion in originations, marking the largest quarter ever with a 324% increase in originations year on year. In addition, “active loans” outstanding increased by 118% from Q1.
In Q2, our lending business added over $2.2B in originations, marking our largest quarter ever with a 324% increase in originations y/y. Active loans outstanding increased 118% from Q1. Find out more in our Q2 report: https://t.co/fJy6xahsuU
— Genesis (@GenesisTrading) August 4, 2020
Yield farmers spike up crypto lending
In an interview, Genesis CEO Michael Moro said the business was growing at a comfortable phase. He added that its growth was a “function of many things,” as long as it was within its risk framework.
Cryptocurrencies, despite their allure and ability to work as a global hedge, remain a high-risk asset marred with fraudulent actors, little-to-no regulation, and high volatility. Still, the emergence of the DeFi market — and yields up to 1000 percent — is starting to create a new narrative.
The Genesis report noted traders seeking new yield opportunities underpinned the huge