Genesis, a cryptocurrency brokerage, is reportedly set to receive a $140m equity infusion from its parent company, Digital Currency Group, to support its balance sheet.
This equity is being deployed, after Genesis announced its derivatives business has $175m locked in a trading account of FTX, according to a report from Bloomberg. Last week, FTX filed for bankruptcy protection.
Another report announcing the equity infusion came from CoinDesk, which is an independent subsidiary of Digital Currency Group.
It reported an email from Genesis to clients. It said, “While the operation of our lending and trading businesses has not been impacted by recent market events, Genesis has taken steps to strengthen its balance sheet with an additional equity infusion of $140M from our parent company, Digital Currency Group,” the email said, per the report.
“The additional capital will bolster our position as a global leader in crypto capital markets and allow us to support our clients and the growing demand for our services.”
Genesis connects institutional investors to digital asset markets, with tools to trade, borrow, hedge, generate yield and more. Its technology helps institutions access a sell-side trading desk, lend over 25 digital assets, stablecoins and fiat currencies, connect with a liquidity provider for cryptoassets, and more.
In other cryptocurrency news, TRM Labs, a blockchain intelligence detecting crypto-related fraud and financial crime, raised $70m for its Series B funding round. The company provides blockchain intelligence to help government agencies, financial institutions and cryptocurrency businesses to detect, investigate and mitigate crypto-related fraud and financial crime.
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