Genesis Global Trading to wind down crypto spot trading

GGT is ‘working closely with regulatory authorities’ to discontinue services

September 5, 2023 04:55 pm

CryptoFX/Shutterstock modified by Blockworks

Genesis Global Trading (GGT) will shutter its crypto spot trading operations in September.

A spokesperson for Genesis, which is a subsidiary of Barry Silbert’s Digital Currency Group, said that the decision was made “voluntarily and for business reasons.”

“We are working closely with regulatory authorities to coordinate an orderly discontinuation of services,” the spokesperson continued.

GGT is based in New York and offers over-the-counter market-making services in digital assets. According to the website, it’s licensed with the New York Department of Financial Services, the Financial Industry Regulatory Authority, and the US Securities and Exchange Commission.

Newsletter

Subscribe to The Breakdown

However, both spot and derivatives trading through GGC International Limited will still be “operational.”

GGC is a British Islands company “wholly owned by Genesis Bermuda Holdco Limited,” according to the Genesis Trading site.

Genesis Trading released a quarterly report for the second quarter of this year, noting that “spot market liquidity” had been “suffering” and that, with “spot order book depth chronically flagging, it has become increasingly apparent that a significant portion of the future growth of crypto volumes will be in derivatives.”

Though it also noted that “the buy-side continues to trade opportunistically in the spot and derivatives market, specifically with a tilt toward exchange-cleared venues and a selective approach to OTC activity with reliable and trusted partners.”

Another Genesis-linked company, Genesis Global Holdco, filed for bankruptcy at the start of the year, though GGT was able to avoid the bankruptcy. All companies are indirectly linked back to DCG.

DCG, a venture capital firm, has encountered its fair share of hurdles this year. It missed a $630 million debt payment to Gemini back in May and now faces a lawsuit from Gemini.

Gemini alleged both DCG and Silbert “engaged in a fraudulent scheme to induce a variety of depositors, including Gemini users,” in order to “lend huge amounts of cryptocurrency and US Dollars to DCG’s subsidiary Genesis Global Capital.”

Get the news in your inbox. Explore Blockworks newsletters:

The Breakdown: Decoding crypto and the markets. Daily.
0xResearch: Alpha in your inbox. Think like an analyst.

Tags

Newsletter

The Breakdown

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Digital Asset Summit 2026

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

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.

buy tickets learn more

recent research

Research

Kinetiq Protocol: From LST Infrastructure to HIP-3 Deployer

Kinetiq has established itself as Hyperliquid's dominant liquid staking protocol, holding 82.5% of LST market share with $610M in TVL. The protocol is now expanding beyond its kHYPE staking core into higher take-rate verticals: iHYPE for institutional custody rails, Launch for HIP-3 capital formation, and Markets for builder-deployed perpetuals. We view Markets, launching Jan. 12, as the highest-potential product line given its mechanically scalable, activity-linked unit economics. Near-term revenue remains anchored by kHYPE's KIP-2 fee schedule (~$1.6M annualized), while Markets provides embedded optionality if HIP-3 economics normalize post-Growth Mode. KNTQ's setup is relatively clean: zero insider unlocks until November 2026, 6.2% buyback yield from staking revenue, and cleared airdrop overhang. Risks center on unproven Markets execution, declining kHYPE TVL despite ongoing incentives, and competition from Hyperliquid's native initiatives.

by Shaunda Devens