May 6, 2021, 5:21AM EDT
• 21 min read

The State of the Crypto Credit Ecosystem

Quick Take

  • While the market for crypto lending may still be small relative to other credit markets, the rapid growth in value of the entire crypto asset class,  creation of a new financial system (DeFi), and the ability to provide working capital for companies in the broader ecosystem all speak to the opportunity for crypto credit to maintain its growth in the coming years
  • In the first quarter of 2021, crypto loan originations from Genesis surpassed its entire cumulative originations to date — a testament to the pace of growth in the market for crypto collateralized credit.
  • Contrary to popular belief, crypto has a shortage of leverage in the system; demand and supply dynamics for crypto can vary widely depending on market environment and regime.
  • Industry participants highlight cross-margin, 3rd party tech provider solutions, DeFi, and better connectivity solutions as ways to improve capital efficiency within crypto credit.

You Can Unlock This Research

Thanks to our sponsor for making this Research available for free

X-Margin develops privacy-preserving credit infrastructure for institutional trading, improving capital efficiency by disintermediating credit provision.

X-Margin Credit allows traders to share real-time portfolio risk metrics with lenders and exchanges, while keeping their sensitive data private. This improves trading firms’ ability to access credit and reduces risk for lenders. 

Our technology leverages confidential computing and zero knowledge proofs to provide fast and provably unbiased risk metrics, which in turn opens up credit in the crypto ecosystem in a scalable and flexible way. 

X-Margin is backed by leading digital asset investors, including Polychain, DCG, CoinShares, and the industry’s most active trading firms. Learn more from the X-Margin team today!


Enter your e-mail below to access this full report, courtesy of X-Margin.