The equity funding round was led by Morgan Creek Digital and Castle Island Ventures, with contributions from Galaxy Ventures and BitGo Ventures, among others. The loan financing facility, provided by Galaxy Ventures, is intended to support crypto-backed loans issued through Arch Lending’s platform. These loans are secured by Bitcoin, Ethereum, and Solana. The facility is designed to expand in response to growing demand and may eventually include additional capital providers or be securitised.
Arch Lending officials commented on the increased demand for borrowing against cryptocurrency as the market matures, noting the need for a reliable platform to provide these services. In turn, representatives from Morgan Creek Digital highlighted the critical role of lending firms in the global financial system and the digital asset ecosystem. They emphasized the importance of developing strong digital asset lending organizations to support industry growth.
Arch’s Co-Founder and CTO stated that the firm has integrated lessons from previous crypto lenders to establish a secure, regulated, and enduring business model. He expressed confidence that the team will set new benchmarks for the industry.
Arch Lending, based in New York City, operates under US state lending licences. Since its founding in February 2022, the company has secured a total of USD 7.75 million in equity funding across two rounds and a USD 70 million loan financing facility.
According to Yahoo Finance, as the price of top crypto assets such as Bitcoin rises, many owners do not want to sell for tax or ideological reasons, but still want access to cash. Arch’s founders believe that the company’s services will appeal to customers who are ‘crypto-rich but cash-constrained,’ as well as others who want to use the loans to invest in other asset classes.
They also view lending as just one product in a broader suite of tools from Arch, including providing custody through BitGo for individuals. They aim to launch other investment products later this year, such as offering a basis trade solution to customers.
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