Genesis Is Closing Its US-Based Cryptocurrency Trading Desk – NewsTo
Genesis Is Closing Its US-Based Cryptocurrency Trading Desk

Genesis Is Closing Its US-Based Cryptocurrency Trading Desk

Genesis appears to be shutting down its trading services months after the company’s banking arm filed for bankruptcy, despite DCG’s earlier assertions.

Genesis Trading, the trading arm of crypto VC powerhouse Digital Currency Group (DCG), is expected to shut down its US operations later this month.

Genesis Global Holdco, DCG’s crypto lending arm, filed for bankruptcy in January, prompting the suspension.

Why Genesis Is Closing US Trading?

According to Bloomberg, a Genesis representative stated that the company is discontinuing its U.S. trading service for “business reasons.”

“This decision was made voluntarily and for business reasons,” the representative stated. “We are working closely with regulatory authorities to coordinate an orderly discontinuation of services.”

Earlier this year, when the company’s lending division failed, DCG asserted that its trading operation would “continue to operate business as usual.”

Genesis mentioned in an email to clients on Tuesday that all trades for its clients must be settled by September 21. On September 30, any remaining open accounts will be closed.

Also Read: US SEC Postpones All 7 Bitcoin ETF Applications; What Next?

It developed the first Bitcoin OTC trading desk in 2013, according to its website. It is now one of the leading providers of cash and credit to “the world’s most prominent digital asset projects, networks, and funds.”

The firm controlled $116 billion in spot volume, $14 million in active loans, and 1,000 institutional clients. The company has been granted a license by the New York Department of Financial Services (NYDFS).

GGC International continues to provide spot and derivatives trading services.

Several other cryptocurrency trading platforms, including Nexo and Bittrex, quit operating in the United States in the past year because of regulatory hurdles.

Coinbase Fills Void

After Genesis and BlockFi failed, Coinbase filled the institutional lending vacuum.

A discreet filing on September 1 disclosed that the company raised $57 million to build an over-collateralized crypto lending platform. The firm can give secure loans to institutional clients after receiving crypto collateral, like primer brokerages in traditional finance.

The service differs from the retail-focused Lend service it attempted to launch in 2021, which was cancelled by the Securities and Exchange Commission (SEC) prior to launch.

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