August 23 Crypto News – Arch Lending Secures $75M in Funding: Expands Crypto-Backed Loan Services

August 23 Crypto News – Arch Lending Partners with Industry Leaders to Secure $75M Funding for Crypto-Backed Loans

August 23 Crypto News – Arch Lending, a prominent provider of crypto-backed loans, has successfully raised $75 million in funding. This total includes an oversubscribed $5 million equity seed round and a substantial $70 million loan financing facility.

Equity Seed Round Co-Led by Industry Leaders

The $5 million equity seed round was co-led by Morgan Creek Digital and Castle Island Ventures, with notable participation from Galaxy Ventures, BitGo Ventures, and other prominent investors. This significant capital infusion positions Arch Lending for continued growth and innovation in the crypto-backed lending space.

Loan Financing Facility to Support Growing Demand

The $70 million loan financing facility, provided by Galaxy Ventures, is designed to support the increasing demand for crypto-backed loans on Arch’s platform. This facility is backed by Bitcoin, Ethereum, and Solana as collateral. Arch Lending does not engage in rehypothecation of collateral, ensuring transparency and security in its operations. The structure of this facility is intended to expand with additional capital providers over time and may eventually be securitized.

Dhruv Patel on Rising Demand for Crypto-Backed Loans

Dhruv Patel, Co-Founder and CEO of Arch Lending, highlighted the growing demand for borrowing against crypto collateral. Patel stated, “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, marking the beginning of Arch’s offerings.”

Founding Team Brings Expertise from Top Tech and Finance Firms

Arch Lending’s founding team includes professionals with experience from leading tech and finance firms such as Bridgewater Associates, Snapchat, Brex, Google, and Tinder. This diverse expertise underscores Arch’s commitment to delivering a cutting-edge user experience in the crypto lending sector.

Mark Yusko on the Importance of Crypto Lending

Mark Yusko, Founder of Morgan Creek Digital and Arch Investor and Board Member, emphasized the critical role of lending firms in the global financial system. Yusko remarked, “Strong lending firms are the backbone of the global financial system and are essential for the development of the digital asset ecosystem. The creation and development of digital asset lending organizations are crucial for the industry’s growth and maturity.”

Himanshu Sahay on Building a Durable Business

Himanshu Sahay, Co-Founder and CTO of Arch Lending, discussed the company’s approach to building a secure and trustworthy business. Sahay stated, “We have taken important learnings from prior crypto lenders to build a secure, regulated, and durable business that is here for the long run. Our team aims to set new standards that will drive growth in this category.”

Arch Lending’s Comprehensive Crypto-Backed Loan Solutions

Arch Lending is recognized as a leading provider of crypto-backed loans, offering over-collateralized loans stored in qualified custody without rehypothecation. The platform provides instant funding in US dollars or stablecoins and features automated services for efficient transactions.

Partnerships and Future Plans

Additionally, Arch Lending offers qualified crypto custody through a partnership with BitGo, featuring bank-grade security and insurance. This partnership also allows for 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. The company has raised a total of $7.75 million in equity funding across two rounds and secured $70 million in loan financing.

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