Invest in 200 cryptocurrency projects
Crypto asset (virtual currency) lending company Genesis has been found to owe creditors more than ¥388 billion ($3 billion). The Financial Times reported on Thursday, citing multiple sources.
Genesis is a subsidiary of the digital currency conglomerate Digital Currency Group (DCG). Sources say DCG may sell some assets in its portfolio to secure funding for Genesis.
According to sources, DCG is investing in 200 cryptocurrency-related projects. The project includes exchanges, banks, custody companies, etc., and assets related to cryptocurrency projects are worth about 64.7 billion yen ($500 million). DCG is considering selling some of the assets, the people said.
What is custody
Refers to holding and managing assets on behalf of investors. A term widely used for assets other than virtual currency.
On the other hand, one of the sources pointed out that the assets obtained by DCG from investing in cryptocurrency related projects are illiquid. Due to the bankruptcy of FTX and the impact of the macro economy, investors have already withdrawn their funds, and even if DCG sells its assets to cash, it is likely that it will take time.
Relation: Severe shock in the virtual currency market, summary of Alameda shock and FTX turmoil
According to the portfolio on its official website, DCG has invested in companies and projects such as: DCG also invested in FTX, although it is not mentioned on the official website.
- Coinbase: Cryptocurrency exchange
- Silvergate: Banking Platform
- Circle: A financial company that issues stablecoins such as USDC
- WENEW: Digital Artist Beeple’s NFT Company
- Rainbow: Ethereum (ETH) Wallet
- Jackpocket: Lottery app for smartphones
Relation: DCG, the largest US virtual currency-related holding company, publishes the ranking of holdings
DCG is a conglomerate company that also owns cryptocurrency media CoinDesk and investment company Grayscale, which provides Bitcoin investment trusts (GBTC). Recently, the relationship with Genesis has attracted a lot of attention.
Relation: U.S. virtual currency investment company DCG acquires Bitcoin investment trust (GBTC) through intra-group financing
One high-profile case is a debt to major exchange Gemini. Gemini used the loan function of Genesis in the virtual currency lending program “Gemini Earn”.
Last November, Gemini also suspended redemptions from its Earn program after Genesis suspended withdrawals citing market conditions. Last month, the Financial Times reported that DCG and Genesis owed Gemini a total of ¥116 billion ($900 million).
Relation: Genesis and DCG, debt of over 100 billion yen to Gemini = report
Also this week, DCG CEO Barry Silbert issued an investor letter. It explains that DCG has borrowed approximately ¥58 billion (approximately $450 million) and 4,550 BTC (equivalent to ¥11 billion) from Genesis, which will mature in May 2023.
Relation: DCG CEO Explains Business-to-Business Loan with Genesis