Leading Digital Assets broker, Genesis, is entering into a partnership with a crypto exchange, Luno to offer interest-bearing products. The new range of financial products will act like a crypto savings bank account.
By this partnership, Genesis will be able to serve retail customers with banking services. The press release notes that,
The partnership creates savings accounts providing institutional-level interest rates to clients in traditional, emerging and frontier markets
Hence, customers will not only be able to invest and earn yield in crypto but also a variety of other investment products backed by equities and commodities.
A recent quarterly (Q2 2020) report from Genesis Trading records new highs with $7.5B in trades and new loan originations. Moreover, it suggests that the loans were primarily taken out for longing Bitcoin. According to the report, the active outstanding loans surged to over $1 billion, posting a 118% rise from Q2 2019.
The CEO of Genesis, Michael Moro, notes in the PR,
The interest customers can earn on their crypto is compelling. It presents an opportunity to speak to a wide audience that’s unfamiliar with crypto, and to offer them a very clear value proposition.”
This comes after the recent legal development in the space granting banking charter to crypto. The U.S. Office of the Comptroller of the Currency (OCC) allowed regulated banking charted companies to offer crypto custody services. Even JPMorgan Chase who has been historically averse to cryptocurrencies provides support to crypto exchanges such as Gemini and Coinbase.
Do you think other crypto exchanges will partner with service providers or apply for the charter themselves? Please share your views with us.