The crypto-backed loan provider, backed by Galaxy Ventures, Morgan Creek Digital, Castle Island Ventures, BitGo Ventures and more, is founded on the principles of asset security, concierge client service, and product excellence.
Arch Lending, the most trusted crypto-backed loan provider, announced $75M in funds raised, including an oversubscribed $5M equity seed round and a $70M loan financing facility. The equity round was co-led by Morgan Creek Digital and Castle Island Ventures with participation from Galaxy Ventures, BitGo Ventures, and more. Arch serves both individuals and institutions, and is known for its concierge customer service, premier product experience, and industry defining security and trust.
The loan financing facility, expected to grow with increased individual and institutional demand, was provided by Galaxy to fund crypto-backed loans originated on Arch’s platform, backed by Bitcoin, Ethereum, and Solana as collateral. Arch does not rehypothecate any collateral. The structure is designed to grow in size with additional capital providers over time and could eventually be securitized.
“We’ve witnessed first-hand the rise in demand for borrowing against crypto collateral as the asset class has matured. Individual and institutional investors alike seek a trustworthy platform to provide this valuable service, the first step in Arch’s offerings,” said Dhruv Patel, Arch Co-Founder and CEO.
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The firm’s founding team brings experience from the best of consumer tech and finance including Bridgewater Associates, Snapchat, Brex, Google, Tinder, and more. The Arch Lending product was designed for investors to experience the cutting edge of consumer tech UX, with a proven lending product.
“Strong lending firms are the backbone of the global financial system and are necessary for the development of the digital asset ecosystem. The creation and development of digital asset lending organizations is essential for the continued growth and maturity of the industry, empowering both institutional and individual participants to harness the full potential of digital assets. Morgan Creek is proud to partner with the outstanding team at Arch Lending to build one of the foundational lenders for the digital asset ecosystem,” said Mark Yusko, Founder of Morgan Creek Digital, and Arch Investor and Board Member.
“We have taken important learnings from prior crypto lenders to build a secure, regulated, trustworthy, and durable business that is here for the long run,” said Himanshu Sahay, Arch Co-Founder and CTO. “Our team will set new standards that will drive growth in this category.”
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