Several institutions are parking their idle cash on Genesis Capital’s balance sheet, the cryptocurrency lender and trading firm announced in its fourth-quarter earnings report Tuesday.
Over the period, the total volume of Genesis’ active loans outstanding increased by 81% to $3.8 billion, while loan originations increased by 46% to $7.6 billion. The average U.S. dollar or stablecoin loan size to Genesis doubled from $2 million to $4 million in the fourth quarter, and the average loan size for first-time lenders on the Genesis platform increased from $590,000 to $3.2 million.
Genesis, like CoinDesk, is owned by Digital Currency Group.
These results are in line with observations by economists who’ve noted that institutions are saving more and investors are searching for yield amid a low interest rate environment that will persist during the pandemic-induced recession.
“The space is just bigger,” Genesis CEO Michael Moro said. “We’ll see more and more people buying from the spot market for the first time, borrowing and lending for the first time … the hope is to continue to be able to unlock more supply, that we will be able to get more traditional lenders lending dollars into the crypto space, to hopefully keep interest rates under control.”