Genesis is a leading name in digital currency brokerage services, and Luno is one of the largest cryptocurrency exchanges in Africa. This partnership will provide institutional-level interest rates to Luno users on their crypto holdings. Further, it will be an exciting way for crypto users to access bank-like features, especially for users in emerging markets who are largely underbanked.
Genesis has firmly established itself as the first and largest institutional digital asset lender, with zero defaults across the history of its lending business.
Genesis CEO Michael Moro noted, “We share Luno’s passion for making it safe and easy – across all segments of the market – to learn about, buy and store cryptocurrencies. By combining Genesis’s infrastructure with Luno’s footprint in more than 40 countries, we’re creating a fairer, more inclusive financial system by providing access to interest-bearing products to historically underbanked and unbanked populations.”
“We’re operating in a historical context where global fiat monetary policy has produced record low interest rates in traditional money market and savings accounts. The interest customers can earn on their crypto is compelling. It presents an opportunity to attract those unfamiliar with crypto, and to offer them a very clear value proposition.”
Luno CEO Marcus Swanepoel, said, “Our partnership with Genesis allows us to offer more diversified financial products to our customers. We’re dedicated to providing innovative financial solutions to consumers all over the world – whether they are in Africa, Asia or Europe – regardless of their local currency. We specialise in making crypto safe and easy to use.”
“Digital currency investors have become increasingly sophisticated, seeking not just liquidity from exchanges, but also a competitive yield on their crypto assets,” said Leon Marshall, Head of Institutional Sales at Genesis. “Our global focus has helped us become the largest trading and lending firm in the digital asset space, and we are both privileged and excited to be working with a global leader like Luno.”
Also, Luno integrated PayU payments for Nigerian users. This will allow users to make direct crypto purchases without making deposits first.
In March 2020, Luno reported its largest number of active users globally since April 2019 and saw a 25% increase in new customers from Q4 (2019) to Q1 (2020) in Africa.
Last month, we published an exclusive interview with the Luno team, exploring their move into the Ghanaian and Kenyan market.
You should also read: Insights: After Reaching 4 Million Users, Luno Enters Kenya and Ghana Next
It will be interesting to see how existing users adopt the interest-earning feature and how new users utilize it too.