According to the company, this will bolster its position as a global leader in crypto capital markets.
Genesis trading announced on Nov. 10 that it will receive an additional equity infusion of $140 million from its parent company, Digital Currency Group. According to the company, this decision was made to “strengthen its balance sheet” and boost its “position as a global leader in crypto capital markets.”
Genesis said it also hopes that the equity infusion will put its company in a position to support its clients and “the growing demand” for its services. This is according to a snapshot of a letter sent to its clients, as shared by Wu Blockchain on its Twitter account.
On Oct. 10, Genesis trading revealed that its derivatives business had around $175 million worth of funds locked away in an FTX trading account. Although FTX is facing a “liquidity crunch” and has recently filed for bankruptcy, Genesis assured its clients that the millions of dollars locked in FTX would not impact its market-making activities.
Genesis also reassured its clients that it doesn’t have “an ongoing lending relationship with FTX or Alameda.” In light of recent market events that have taken a toll on the entire cryptocurrency industry, many companies are distancing themselves from the FTX fallout, including Tether, Circle, Kraken, and Coinbase, whic have all openly declared that they are not exposed to the troubled firms.
In July, Genesis Trading was among the prominent lending firms that had exposure to the now-liquidated Singaporean crypto hedge fund Three Arrows Capital (3AC). Back then, former CEO Michael Moro shared that the firm had managed to mitigate losses after 3AC had failed to meet a margin call on capital borrowed from Genesis.
Source: Cointelegraph.com
