Genesis Global Files for Bankruptcy, Owing Over $3.5B to Creditors

• Genesis Global has filed for Chapter 11 Bankruptcy, owing over $3.5 billion to creditors.
• Gemini is the largest creditor of Genesis, being owed over $800 million from its Gemini Earn customers.
• The bankruptcy proceedings of Genesis may cause contagion to Grayscale Investments and its huge BTC reserve.

Genesis Global, the subsidiary of the Digital Currency Group (DCG), has finally filed for Chapter 11 Bankruptcy, owing its creditors more than $3.5 billion. This news comes after a series of financial woes the company had been dealing with for the past few months. The company named over 100,000 creditors in its bankruptcy filing published on Thursday.

The troubles of Genesis began last year when the crypto hedge fund, Three Arrows Capital (3AC) went bankrupt. This caused Genesis to halt withdrawals with the collapse of the FTX Derivatives Exchange. The bankruptcy of 3AC and the FTX implosion finally exposed the financial woes that had been lurking for several months.

Per the bankruptcy filing, Genesis is owing some very prominent investors huge sums of money. Gemini, the crypto trading platform, is the largest creditor of Genesis, being owed more than $800 million from its Gemini Earn customers. Other companies to whom the bankruptcy proceedings will give priority include Grayscale Investments and its huge BTC reserve.

The first primary consideration for Genesis is a restructuring that can either result in a selloff or reorganization. The firm said it is exploring the best option to satisfy all of its creditors. The company hopes that by the end of the bankruptcy proceedings, it will have enough funds to repay all users with unstructured credits.

The filing of bankruptcy by Genesis Global is a cause of worry for the entire crypto market as it may fuel contagion to Grayscale Investments and its huge BTC reserve. The financial woes of the company are a reminder of the volatility of the crypto market, and the need for investors to be aware of the risks before investing in any asset. It remains to be seen if the bankruptcy proceedings of Genesis will be able to satisfy all its creditors and put the company back on the right path.

DeFi Meets TradFi: AllianceBlock & Artbanx Create Art-Backed Loans

• AllianceBlock and Artbanx are partnering to create a decentralized lending platform for art collectors.
• Through this platform, physical artworks owners will be able to obtain loans against those assets in a decentralized way, with liquidity providers able to earn stable yield in return for fronting them the capital.
• This offering is a unique service that no one else can currently offer and will enable the owners of physical artworks to take advantage of a financing option that was previously only offered by banks and specialized art-lending firms.

The decentralized finance ecosystem provider AllianceBlock is partnering with Artbanx to create a new service where people can use real-world art as collateral to obtain asset-backed loans that leverage AllianceBlock’s DeFi infrastructure. This is an exciting development that will genuinely bridge the gap between traditional finance (TradFi) and DeFi, allowing owners of physical artworks to use those assets as collateral to obtain a loan, while still maintaining full ownership.

The offering is a natural extension of the capabilities of Artbanx, which is one of the industry’s leading platforms for buying, selling and managing art. Through its platform, physical artworks owners will be able to obtain loans against those assets in a decentralized way, with liquidity providers able to earn stable yield in return for fronting them the capital. Artbanx is a traditional Web2 company that’s exploring the possibilities of Web3 for the first time through this unique offering. It’s drawing on AllianceBlock’s ready-made DeFi infrastructure, Nexera ID and the MetaNFT standard, and says that by doing so it has been able to reduce the time to market by up to eight months while saving 70% on the costs of developing such a platform.

The offering means that owners of physical artworks will be able to take advantage of a financing option that was previously only offered by banks and specialized art-lending firms. Traditionally, the owner of the art would have to hand over possession of the piece to the lender and would be charged a hefty interest rate. With this new offering, art owners can retain full ownership of the artwork while still accessing the capital they need.

AllianceBlock and Artbanx are hoping that this new offering will revolutionize the way art collectors access financing and will open up a new world of possibilities. Not only will it make it easier for art collectors to access the capital they need to acquire more pieces, but it will also make it easier for them to monetize their collections without having to part with them. This could open up a new wave of opportunities for art collectors, as well as for the industry as a whole.

The two companies are currently in the process of releasing the platform to the public, and it’s expected to be available to users by the end of the year. This is an exciting development for the DeFi space and a true example of how traditional finance and DeFi can be combined to create something totally unique. It will be interesting to see how this offering develops in the coming months and how it will shape the future of the art market.