B2C2 Market Maker Offers to Buy Genesis Crypto Lending Unit Loans

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Prominent crypto market maker B2C2 has offered to buy loans from suddenly struggling crypto financial firm Genesis.

News broke early Wednesday that Genesis’ lending arm was suspending buyouts and new lending, citing the impact to operations of the collapse of Sam Bankman-Fried’s FTX crypto exchange. (Genesis is owned by CoinDesk’s parent company, Digital Currency Group.)

“Throughout the current crypto market turmoil, B2C2 has provided critical liquidity and support to our global customer base,” a B2C2 spokesperson told CoinDesk in an email. “We continued to review, exchange and pay for all of our products.”

The spokesperson continued, “The company is able to support the broader market by offering to work with Genesis and their counterparties to transform existing Genesis Global Capital loans into B2C2. Loans will need to fit within our established risk management framework to qualify.

Original B2C2 founder and director Max Boonen tweeted the offer as a way to help “alleviate the current cash crunch”.

“I didn’t have Genesis on my bingo card. Wow. This leaves very few players in the OTC market,” he wrote. OTC stands for “over-the-counter,” a reference to the market that occurs off exchanges, where trades and transactions are negotiated directly between traders.

When asked if the tweet was a formal offer, Boonen told CoinDesk in a direct message that “it’s a desire to open talks.” The offer would not include all loans. “In fact, they probably need a small % of their total pound to go liquid,” he wrote.

Last week, B2C2 announced the departure of group CEO Phillip Gillespie and his replacement by Nicola White, who joined the company last year from Citadel Securities.

Read more: Crypto investment firm DCG provides $140 million equity injection to trading firm Genesis

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