Crypto-backed loan provider company Arch Lending announced it raised $75 million in funding, including an oversubscribed $5 million equity seed round and a $70 million loan financing facility. This equity round was co-led by Morgan Creek Digital and Castle Island Ventures with participation from Galaxy Ventures, BitGo Ventures, etc. Arch serves individuals and institutions and it is known for its concierge customer service, premier product experience, and security and trust.
This 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 and the structure is designed to grow in size with additional capital providers over time and could eventually be securitized.
The firm’s founding team has experience from the best of consumer tech and finance including Bridgewater Associates, Snapchat, Brex, Google, Tinder, etc. And the Arch Lending product was designed for investors to experience the cutting edge of consumer tech UX, with a proven lending product.
KEY QUOTES:
“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.”
- Dhruv Patel, Arch Co-Founder and CEO
“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.”
- 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. Our team will set new standards that will drive growth in this category.”
• ⁃ Himanshu Sahay, Arch Co-Founder and CTO
