On November 10, Genesis trading announced that it would receive an additional equity infusion of $140 million from its parent company, Digital Currency Group. The company states that this decision was made to strengthen its balance sheet and boost its global leadership in crypto capital markets.
Genesis said that it is also hopeful 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 their clients, as shared by Wu Blockchain on their Twitter account.
On October 10, Genesis trading, a financial services company, revealed that its derivatives business had around $175 million locked away in an FTX trading account. Although FTX is facing a liquidity crunch, Genesis assured its clients that the millions of dollars locked in FTX would not impact its market-making activities.
Cryptocurrencies are experiencing a rough patch, and a number of companies have decided to distance themselves from the troubled firms. Genesis reassuring its clients that they don’t have an “ongoing lending relationship” with FTX or Alameda is a sign of their commitment to maintaining customer confidence.
In July, Genesis Trading was one of the leading lenders to the now-defunct Singaporean crypto hedge fund Three Arrows Capital. Former CEO Michael Moro shared that the firm had been able to minimize losses after Genesis had loaned the firm capital in order to avoid a margin call.
