XRP continued its plunge on Wednesday and gave up all of its early gains as more exchanges and partners are distancing themselves from the fourth-largest crypto asset by market capitalization. Genesis, a New York-based cryptocurrency trading and lending platform, has joined the growing list and suspended its support for Ripple’s coin.
In an email sent to clients, Genesis said it will no longer offer XRP trading and lending services in the wake of an SEC lawsuit against Ripple Labs and its executives. The platform ceased accepting new deposits or spot trades, and clients holding positions have until January 15 to liquidate their trades if there is enough liquidity for the token.
However, the trading suspension will not affect customers’ ability to trade XRP derivatives, which will continue as usual until further notice.
The crypto lender, which targets institutional investors and wealthy individuals, added it will no longer provide custody service or loans in XRP. All fixed-term loans maturing on or after February 1 will be called back for termination.
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Genesis primarily lends to institutional borrowers such as hedge funds and trading firms, looking for arbitrage, mainly to short crypto. Since the launch of the business two years ago, the startup has originated nearly $9 billion in crypto loans, the bulk of which are denominated in bitcoin and cash.
Genesis is an exclusive distribution agent for Grayscale investments products and the company’s crypto suite includes digital asset trading, institutional lending, custody and prime brokerage services.
Furthermore, the company’s derivatives trading desk, which was launched in May, is a principal liquidity provider and trade both cleared and bilateral OTC derivatives in options and forwards.
Although Ripple said it will contest the charges, the legal battle with the SEC could take years if the company fights the charge in court. As such, those who keep the token listed on their platforms may be at risk of being sued and fined if the SEC wins its case and the court deems XRP unregistered securities.