We recognize how challenging this past week has been due to the impact of the FTX news. At Genesis we are entirely focused on doing everything we can to serve our clients and navigate this difficult market environment.
Genesis
729 posts
Genesis
@GenesisTrading
Genesis is a premier financial services firm connecting institutional investors to digital asset markets.
- As part of our goal in providing transparency around this week’s market events, the Genesis derivatives business currently has ~$175M in locked funds in our FTX trading account. This does not impact our market-making activities.
- We want to provide an update on where things currently stand with our lending business. In anticipation of the extreme market volatility yesterday, we hedged and sold collateral resulting in a total loss of ~$7M across all counterparties, including Alameda.
- With regard to today’s market events, we have managed our lending book and have no material net credit exposure. In addition, Genesis has no exposure to any tokens issued by centralized exchanges. We continue to meet the needs of our clients around the world across all products.
- Today we announced our support for USDC and ALGO on @Algorand. Genesis will now be able to seamlessly deploy its USDC and ALGO holdings across Algorand’s DeFi ecosystem by offering borrowing, lending and use of these assets as collateral. Learn more: hubs.li/H0TzVn10
- The Genesis Q3 report is out - we had our largest quarter ever with over $70B in trades, loans and transactions. For a deeper understanding of where institutions have been investing, read the full report here 🔗 hubs.li/H0-BnK50
- Genesis is a liquidity provider to our trading partners — we hedge all our risk including that linked to UST and LUNA. We have no direct exposure to UST and LUNA, and continue to operate and serve our counterparties as usual.
- Today, Genesis released our Q2 Digital Asset Market Report, providing a detailed look at our record Q2 with $7.5B in trades and new loan originations. Read the full report here: genesistrading.com/wp-content/upl…
- Replying to @GenesisTradingOur #1 priority is to serve our clients and preserve their assets. Therefore, in consultation with our professional financial advisors and counsel, we have taken the difficult decision to temporarily suspend redemptions and new loan originations in the lending business.
- Despite continued heightened market volatility, the Genesis balance sheet is strong and our business is operating normally. Our lending business continues to meet client demand. Our trading business remains an essential liquidity provider in the spot and derivatives markets.
- Replying to @GenesisTradingHowever, FTX has created unprecedented market turmoil, resulting in abnormal withdrawal requests which have exceeded our current liquidity.
- The @LFG_org closed a $1.5 billion OTC swap of UST <> BTC, with Genesis leading the way. The Genesis aspect of the deal represents the first of its magnitude, with Genesis Asia Pacific Pte. Ltd. taking on 1 billion UST in exchange for $1 billion worth of BTC.1/ The LFG has acquired an additional 37,863 Bitcoins totaling ~$1.5 billion in OTC swaps with @GenesisTrading and 3AC.
- Replying to @GenesisTradingOur business ops, including lending and trading across spot and derivatives, continue to run normally and our balance sheet remains strong. Yesterday was a top 5 volume day for our derivatives business as clients turn to us during volatile market conditions to manage their risk.
- Replying to @GenesisTradingWe have hired the best advisors in the industry to explore all possible options. Next week, we will deliver a plan for the lending business. We’re working tirelessly to identify the best solutions for the lending business, including among other things, sourcing new liquidity.
