ANNOUNCEMENT! We're excited to share that The Block Pro, a portfolio of research, news and data products in one easy-to-use platform, launches later this month. Reach out to your account manager for more information about products and subscription options.
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.
Footnotes
Join The Block Research for exclusive research like this
Gain access to this research piece and 100s of others, including ecosystem maps, company profiles, and topics spanning DeFi, CBDCs, banking and markets. Together with additional services, we help organizations understand what’s happening in the rapidly developing digital asset ecosystem.
