Genesis Debt Entices Market Maker B2C2

The liquidity provider B2C2 is in talks to purchase some of Genesis’ short-term loans at a discount

article-image

Blockworks exclusive art by axel rangel

share

Genesis’ crypto lending division paused redemptions on more than $2 billion of loans just this morning in New York. And fellow lender B2C2 is already looking to profit from the firm’s plight. 

It’s not yet clear whether Genesis’ liquidity troubles are temporary, but B2C2 has already tossed its hat into the ring to purchase Genesis’ loans at discounted prices.

Max Boonen, founder of the digital asset liquidity provider B2C2, offered to purchase Genesis’ loans shortly after news broke of the firm’s redemptions woes. 

Boonen told Blockworks he expects a potential deal would be finalized within the week, and B2C2 is looking for quality, short term loans in the ballpark of six months. There’s no word from Genesis yet on their preferred term — or if they’d even move forward on a deal — but representatives from the company have already engaged in preliminary talks with Boonen, he said. 

Boonen declined to comment on specific numbers for a potential deal, saying he has yet to see Genesis’ balance sheet.

Alameda Research — the asset manager owned by former FTX CEO Sam Bankman-Fried — was among a small circle of crypto market makers. Apart from Genesis, precious few spot market makers would remain, including Cumberland, Wintermute and B2C2.

FTX struck similar deals following the Terra and Three Arrows Capital collapses with Bankman-Fried calling troubled lender bailouts his responsibility. Boonen doesn’t see a possible Genesis loan deal in the same light.

“We’re not doing this out of an altruistic impulse,” Boonen said. “We think that there’s actually money to be made” by acquiring discounted loans and bolstering B2C2’s reputation.

An asset sale between two of crypto’s largest market makers would grant Genesis quick liquid assets as it looks to avoid insolvency. Binance is also considering buying Genesis’ loans, Blockworks reported.

Genesis “seems to be at all costs trying to avoid [bankruptcy],” according to a source familiar with the matter, adding that the gambit would be risky and expensive. The source was granted anonymity to discuss sensitive business dealings. 

A spokesperson for Genesis did not immediately return a request for comment. 

Whether Genesis can get anywhere close to face value on its assets will depend on whether it can stay above water.

“If [Genesis is] actually insolvent, the loans from their lenders would be worth pennies on the dollar,” Boonen said.

Michael Bodley contributed reporting.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (6).png

Research

In recent months, a number of highly accretive developments were implemented across the protocol to improve fee capture, expand product functionality, and ultimately drive value accrual to the RUNE token, with more upgrades on the immediate horizon. These developments include hiking the minimum swap fee parameter to increase revenue, adding a Burn System Income Lever to reduce the RUNE supply, the addition of COSM-WASM smart contracting and IBC to enable an application layer, new chain integrations, and more.

article-image

The app has just two tabs, one for making swaps and one for viewing your wallet balance

article-image

Delta comes out of stealth with $11 million in funding, and some novel ideas

article-image

HBO documentary Money Electric presents a fun theory that sadly falls flat

article-image

Has Satoshi Nakamoto been here the whole time, working on Bitcoin Core?

article-image

The same tokens were also named as securities in the SEC’s lawsuits against Coinbase and Binance