Genesis Capital to Become the ‘Goldman Sachs’ of Crypto with Vo1t Acquisition
New York-based cryptocurrency firm Genesis Capital announced on Thursday that it has acquired Vo1t for an undisclosed amount.
The aim is “to build the preeminent prime brokerage in the digital currency ecosystem — a one-stop-shop for trading, lending, and securing digital assets for financial institutions,” said Michael Moro, Chief Executive Officer of Genesis in its official announcement.
It would be like the ‘Goldman Sachs' in the traditional financial world, offering a full suite of services to its clients.
Race to Zero Fees
With the digital currency marketplace maturing at a rapid pace witnessing the entry of small and large financial institutions, there is a raising need for a prime broker.
Offering crypto custody to its clients will also help the company attract a wide array of institutional clients, especially those that are required to hold assets with certified custodians. Moro said,
“My view on the custody space is that it's not a great standalone business. There's a lot of competition, and it's race to zero on fees.”
Grayscale to make the shift from Coinbase to Genesis?
Interestingly, Genesis that goes back to 2013 is the subsidiary of crypto conglomerate Digital Currency Group just like Grayscale.
There has been no comment from Moro on this, he just told Fortune they are governed by long-term contracts.
Besides becoming prime brokers, Genesis has already started growing its international team with new offices in London and Singapore. Soon, they will be launching a derivatives trading desk and adding capital introduction capabilities for hedge funds, quant funds, asset managers, and family offices.