Genesis Acquires Qu Capital09.19.2019 By Rob Daly Editor-at-Large
Genesis, an industry pioneer and leader in digital currency trading and lending, today announced the acquisition of the assets of Qu Capital, a New York-based quantitative investment and research firm. Founded in 2017, Qu Capital has developed state-of-the-art trading technology including faster exchange connectivity, improved order routing, and advanced execution tools, and conducted quantitative research on the digital currency market. Qu Capital was co-founded by Alex Price, Lucas Schuermann, and Edward Yu, who met at Columbia University.
“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,” said Michael Moro, CEO of Genesis. “This acquisition is the latest effort to bolster our technology capabilities and intellectual firepower in order to better serve clients in an increasingly competitive marketplace.”
“Genesis is committed to offering best-in-class trading and lending technology solutions to our institutional counterparties,” said Pat DeFrancesco, CTO of Genesis. “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.”
A broker-dealer registered with the SEC and FINRA, Genesis facilitates trades for institutional investors and high net worth individuals looking to buy or sell large sums of digital currencies. Genesis provides liquidity to its trading partners, along with same-day settlement, 24/7 trading, and deep institutional expertise developed from trading billions of dollars in digital assets since entering the industry in 2013.
In 2018, Genesis launched its lending business, Genesis Capital, to provide a platform for borrowing and lending digital currencies.
The deal should boost the firm's LME operations in Germany, say officials.
The deal entails the acquisition of three of the firm's brokerage businesses.
Schwab estimates a $1.8B to $2B run-rate expense synergies within three years of the deal's close.
The acquisition extends the vendor's SaaS offerings to private debt markets.
The acquisition will bring approximately $3.7 billion AUM to the independent wealth manager.