Arch Lending, the 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.”
Dhruv Patel, Arch Co-Founder and CEO:
“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.”
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.”
Mark Yusko, Founder of Morgan Creek Digital, and Arch Investor and Board Member:
“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.”
Himanshu Sahay, Arch Co-Founder and CTO:
“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. Our team will set new standards that will drive growth in this category.”
Arch Lending is the most trusted provider “of crypto-backed loans, combining security, concierge customer service, and automation to serve individuals and institutions.”
Its flagship product is over-collateralized “crypto-backed loans, stored in qualified custody, and without rehypothecation of collateral.”
The automated platform provides instant funding “in US dollars or stablecoins.”
Additionally, Arch Lending offers “qualified crypto custody to individuals as a standalone offering through a partnership with BitGo, featuring bank-grade security and insurance, and allows trading and staking from cold custody.”
Based in New York City and operating under US state lending licenses, Arch Lending was founded “in February 2022 and has raised $7.75M in aggregate equity funding across two rounds and $70M in a loan financing facility.”
