Arch Lending raised $75 million in funds, including an oversubscribed $5 million equity seed round and a $70 million 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.
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,” Dhruv Patel, co-founder and CEO of Arch Lending, said. “Individual and institutional investors alike seek a trustworthy platform to provide this valuable service, the first step in Arch’s offerings.”
“Strong lending firms are the backbone of the global financial system and are necessary for the development of the digital asset ecosystem,” Mark Yusko, founder of Morgan Creek Digital and investor and board member of Arch Lending, said. “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.”
“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,” Himanshu Sahay, co-founder and chief technology officer of Arch Lending, said. “Our team will set new standards that will drive growth in this category.”
