Genesis Trading Acquires Quant Investment Firm Qu Capital

Digital currency trader and lender Genesis expanded its trading and research capabilities Thursday by acquiring New York-based quantitative investment firm Qu Capital.

In an interview with CoinDesk, Genesis CEO Michael Moro said Qu Capital initially approached his company to use its trading and lending services early this year. Genesis then decided to acquire Qu Capital to integrate its in-house team and expand its trading and lending businesses.

Moro declined to disclose financial terms of the deal.

Some of the technologies in use by Qu Capital are needed by Genesis to build its internal team, according to Moro. For example, one of the patented products acquired is a smart order routing system to facilitate transactions between cryptocurrency exchanges and investors.

Upon the acquisition, Genesis has hired two of the three founders Lucas Schuermann, Edward Yu and one junior staff member out of the six-person team at Qu Capital.

"We have been very impressed with the Qu Capital team and believe they will provide key technology enhancements that will benefit our trading and lending clients," Moro said.

Genesis struck its first acquisition deal as its crypto-related lending business saw $746 million in loans in the second quarter, increasing its total originations to $2.3 billion since its launch in March 2018. The company provides high-net-worth individuals and institutional investors with over-the-counter digital currency trading and leading services,.

Investment startup Qu Capital, founded in 2017, develop trading technology, including exchange connectivity, order routing, and execution tools.

"We are excited to add the Qu Capital tools, which incorporate machine learning and other advanced methodologies, into our existing technology stack and new product offerings," Pat DeFrancesco, CTO of Genesis, said in a statement announcing the acquisition.

Genesis CEO Michael Moro via Flickr