Arch Lending raises $75m in equity and debt financing to power crypto-backed loans
New York-based fintech start-up Arch Lending has raised $75 million in equity and debt financing as it looks to build “the new standard in crypto-backed loans”.
Arch Lending raises $75 million in equity and debt
The raise includes an oversubscribed $5 million equity seed round led by Morgan Creek Digital and Castle Island Ventures, with additional support from a range of VC firms including Galaxy Ventures, BitGo Ventures and Perpetual Value Partners.
Alongside the equity funding, the firm has also secured a $70 million loan debt financing facility in partnership with Galaxy Ventures to “fund crypto-backed loans on our platform”.
According to Arch Lending, the facility has been designed to “scale with demand”, with additional plans to “expand it even further with more capital partners”.
Founded in 2022, Arch Lending provides loans to individual and institutional investors that are staked against various forms of cryptocurrency, including Bitcoin, Ethereum and Solana.
Co-founder and CEO Dhruv Patel states that with the growing maturity of the asset class, the platform has experienced “a real surge in demand for borrowing against crypto”.
“Both individual and institutional investors are looking for a platform they can trust, and Arch is here to deliver just that,” adds Patel.
Himanshu Sahay, co-founder and CTO of Arch Lending, says that the start-up has “learned from the successes and challenges of past crypto lenders” in creating its platform, adding that the company’s goal is “to set new standards and drive growth in the crypto lending industry”.
