Arch Lending, a crypto-backed loan provider, raised $75 million, including an oversubscribed $5 million equity seed round, bringing its aggregate equity round to $7.75 million, 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 others. The loan financing facility was provided by Galaxy to fund crypto-backed loans originated on Arch’s platform, backed by Bitcoin, Ethereum, and Solana as 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.
New York-based Arch Lending does not rehypothecate any collateral. The structure is designed to grow with additional capital providers over time and could eventually be securitized, the company said.
Pictured: Himanshu Sahay and Dhruv Patel, Arch co-founders
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