LFG Closes $1.5 Billion OTC Deal of UST for BTC with Genesis and Three Arrows Capital (3AC) for the UST Forex Reserve

Share Article

The Luna Foundation Guard, a non-profit organization in Singapore, has announced the closing of a $1.5 billion OTC swap with leading digital currency full-service prime broker Genesis, and prominent crypto hedge fund Three Arrows Capital (3AC).

As the leading broker in digital currencies, Genesis’ participation displays the growing demand for decentralized stablecoins in the broader crypto market, helping to build bridges across crypto communities tied together by a common decentralized money.

The Luna Foundation Guard (LFG), a recently formed non-profit organization to support decentralization, economic sovereignty, and foster the growth of the Terra ecosystem, has unveiled the closing of a $1 billion OTC swap of UST for BTC led by prominent digital currency prime broker, Genesis. Three Arrows Capital (3AC), a leading crypto hedge fund also participated, with the LFG purchasing $500 million worth of BTC via 3AC – with the total purchases by the LFG equating to $1.5 billion in BTC.

The deal marks another significant step for the LFG, which has been accumulating vast quantities of BTC to supplement the UST Forex Reserve, a pool of BTC being designed as an additional layer of support for the TerraUSD (UST) stablecoin peg and to expand the continued adoption of UST as the industry’s largest decentralized stablecoin.

“The LFG’s mission to support the stability and adoption of the UST stablecoin continues with the latest deal acquiring BTC from Genesis for the UST Forex Reserve,” says Do Kwon, LFG Governing Council member and Co-Founder and CEO of Terraform Labs (TFL). “As the leading broker in digital currencies, Genesis’ participation displays the growing demand for decentralized stablecoins in the broader crypto market, helping to build bridges across crypto communities tied together by a common decentralized money.”

The addition of $1.5 billion in BTC pushes the UST Forex Reserve into the top 10 BTC holders in the world. The reserve now holds roughly $3.5 billion in BTC. This is the second deal of $1 billion executed by the LFG so far in 2022. The LFG has now acquired roughly one-third of the $10 billion goal expressed by Do Kwon earlier this year.

The Genesis aspect of the OTC deal represents the first of its kind at such a magnitude, with Genesis Asia Pacific Pte. Ltd. taking on 1 billion UST in exchange for $1 billion worth of BTC.

"Terra's remarkable growth has continuously reshaped crypto markets over the last two years,” said Joshua Lim, Head of Derivatives at Genesis. “Genesis is excited to be a liquidity partner to the Terra ecosystem, connecting it to a broader audience of institutional market participants."

The LFG’s recent moves highlight an ongoing endeavor to add high-quality assets to the UST Forex Reserve and break down the barriers between traditionally tribal crypto communities. The BTC serves as a credibly neutral, hard asset to support the UST stablecoin, and also provides an expanded utility service for Bitcoin as the reserve asset helping to support the swelling expansion of the decentralized stablecoin UST across various blockchains.

Aligning incentives between once-isolated crypto communities unlocks powerful mutual synergies between online communities, with decentralized money binding together unique ecosystems.

Moving forward, the LFG has considered several options for bridging BTC to the Terra blockchain, with proposed specifications for deploying the BTC Reserve pool on-chain and decentralized are currently in progress following a research proposal on Terra’s Agora forum.

About Luna Foundation Guard

The Luna Foundation Guard (“LFG”) is a non-profit organization dedicated to creating and providing greater economic sovereignty, security, and sustainability of open-source software and applications that help build and promote a truly decentralized economy. Through community stewardship, fostering innovation, and supporting the research and development of various aspects enveloping open-source software and applications, the LFG serves as a vital nexus of resources and guidance for an emerging DeFi technology stack.

About Genesis Asia Pacific Pte. Ltd.

Genesis is a full-service digital currency prime brokerage, providing a single point of access for the digital currency needs of global institutional investors. Genesis combines unrivaled operational excellence, a seamless user experience, and best-in-class client service to provide the full suite of services global investors require to manage their digital asset portfolios.

The firm offers sophisticated market participants a fully integrated platform to trade, borrow, lend, and custody digital assets, creating new opportunities for leverage and yield while increasing capital efficiency and security for counterparties.

Genesis is a subsidiary of Digital Currency Group (DCG), one of the largest private investors in blockchain and digital asset companies.

For more information on Genesis, please visit genesistrading.com and follow @GenesisTrading on Twitter.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Sarah Cohen
Melrose PR
(310) 260-7901
Email >
Visit website