world’s largest cryptocurrency The founder of the exchange Binance is reportedly interested in buying the loan portfolio of Genesis.
Binance CEO Changpeng Zhao To Offer To Buy Genesis $2.8 Billion Loan Assets According To Sources
Blockworks spoke to a source familiar with the matter and explained that Changpeng Zhao has begun to learn more about the state of Genesis’ balance sheet while considering a potential bid for Genesis’ loan assets.
Genesis’ 3rd quarter 2022 report includes $2.8 billion in active loans.
Another source stated that any attempt is likely to be rejected by Genesis’ parent company, Digital Currency Group (DCG), and more than $2 billion will have to be raised.
Last week, Changpeng Zhao made a research and non-binding agreement to buy the embattled FTX company, but later backed out.
Genesis had already suffered hundreds of millions of dollars in losses during the crypto crash in May, and last week reported $175 million in direct exposure to FTX. Parent company Digital Currency Group had transferred $140 million in capital to Genesis as an emergency measure.
If CZ has the reserves to buy Genesis’ portfolio, Binance’s position at the top of the cryptocurrency pyramid could be consolidated.
A major competitor for Binance will be out of the way, and CZ may even find itself in a position to decide whether to continue to strengthen the lending programs of other competitors, including Gemini and Circle, two stablecoin issuers that directly compete with the BUSD Binance stablecoin issued by Paxos.
*Not investment advice.
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