(Bloomberg) -- Crypto brokerage Genesis, reeling from a sharp decline in the digital-asset market that sent the industry into a tailspin, said it originated $8.4 billion in new loans in the third quarter, an 80% plunge from the prior three-month period. Most of the rest of its businesses also experienced substantial declines.  

Total active loans slumped to $2.8 billion from $4.9 billion in the second quarter, Genesis said in its quarterly earnings report. Trading volumes also declined, with spot volume sliding 44% to $9.6 billion. Its derivatives desk traded $18.7 billion in notional value, down 30% from the prior quarter. In one bright spot, the company’s custody services saw an 8% increase in client signups.

The brokerage, a unit of billionaire Barry Silbert’s Digital Currency Group, said its lending desk was “staying active through the market sell off” but the industry’s appetite for leverage “continues to wane” in the face of deteriorating macro conditions, characterized by persistent interest-rate increases. 

“Heading into the fourth quarter, the cryptocurrency market is lacking directional momentum as participants are taking stock after a beleaguering summer of endless negative headlines,” Genesis said in its report, adding that the company is “prepared for a sustained crypto winter.”

Genesis was the biggest creditor ensnared in the collapse of Three Arrows after the once highflying hedge fund failed to meet margin calls. Over the summer, the company cut staff by 20% and overhauled its leadership team. A series of senior executives have departed, including its co-head of sales and trading Matt Ballensweig and head of derivatives Joshua Lim. Most recently, its new chief risk officer Michael Patchen also left after three months. 

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