The post Digital Currency Group Settles Debts, Focuses on New Grayscale Products appeared first on Coinpedia Fintech News
DCG clears debts! Digital Currency Group (DCG) announced that it has fully repaid its short-term debts as of June 2024, leaving only a $1.1 billion promissory note owed to its bankrupt crypto-lending subsidiary, Genesis. This promissory note is due in 2032. Over the past 18 months, DCG managed to repay over $1 billion to its creditors, benefiting from strong financial performance in the first half of the year.
Creditors breathe easy, and DCG starts over. For you, it meansâŠ
Genesis and the 2022 Market Downturn
Genesis and DCG were hit hard by the 2022 market crisis after Three Arrows Capital and FTX collapsed. The fund crashed, costing Genesis billions from Three Arrows. DCG stepped in to support Genesis, including issuing the $1.1 billion promissory note. However, Genesis later filed for bankruptcy after FTXâs collapse in November 2022.
Repayment of Genesisâ Creditors
Despite these challenges, DCG has worked to repay Genesisâ creditors, including crypto exchange Gemini, which had entrusted Genesis with customer deposits from its âEarnâ program. According to DCG, over 99% of Genesisâ more than 200,000 claimants are receiving full recovery, with many receiving returns exceeding 100% relative to petition date prices. This outcome is described as an âextraordinary recoveryâ for a bankruptcy case.
Grayscaleâs New Product Launches
As DCG closes the chapter on Genesis, it turns its focus to its asset management division, Grayscale. Grayscale launched several new products this year, including spot Bitcoin and Ethereum ETFs, converting its BTC and ETH trusts into ETFs. Plus, Grayscale introduced nine new products, including BTC and ETH Mini products, which have attracted significant inflows.
DCGâs efforts to stabilize its financial position and expand its product offerings through Grayscale highlight its resilience in the face of past market turmoil. Though the large chunk of debt is cleared yet $1.1B is a huge amount to be cleared by 2032.