The Rise of Crypto Lending: Arch Lending Secures $75M in Funding

In a significant move that highlights the growing demand for crypto-backed lending, Arch Lending has announced a whopping $75 million in funding. This includes 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 crypto lending market is on the rise

Arch Lending, a trusted crypto-backed loan provider, serves both individuals and institutions. The company 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.

“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,” said Dhruv Patel, Arch Co-Founder and CEO.

Dhruv Patel, Arch Co-Founder and CEO

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.

“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,” said Mark Yusko, Founder of Morgan Creek Digital, and Arch Investor and Board Member.

Mark Yusko, Founder of Morgan Creek Digital

“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,” said Himanshu Sahay, Arch Co-Founder and CTO. “Our team will set new standards that will drive growth in this category.”

Himanshu Sahay, Arch Co-Founder and CTO

The funding announcement comes at a time when the crypto lending market is experiencing significant growth. As more investors turn to crypto-backed lending, companies like Arch Lending are poised to play a major role in shaping the future of the industry.

The crypto lending market is expected to continue growing

In conclusion, Arch Lending’s $75 million funding announcement is a significant milestone in the company’s journey to become a leading player in the crypto lending market. With its strong team, secure platform, and commitment to innovation, Arch Lending is well-positioned to drive growth and adoption in the industry.

Arch Lending is a trusted crypto-backed loan provider