• Fintech startup Arch has launched a new crypto lending product, and has also raised $2.75 million in funding.
• The platform allows users to take out a single loan collateralized across combined alternative assets, with loans custodied by BitGo and denominated in either U.S. dollars or USD coin (USDC) stablecoins.
• Arch doesn’t touch or reloan customer funds for any reason, and the target customers are higher income individuals who invest heavily in alternative assets.
Fintech startup Arch has made a major announcement today: the launch of its new crypto lending product, alongside a successful funding round of $2.75 million. Founded in February 2022, Arch is a financial technology company targeting alternative asset investors, based in New York.
The platform allows users to take out a single loan collateralized across combined alternative assets – starting with cryptocurrencies. The loans are custodied by BitGo and denominated in either U.S. dollars or USD coin (USDC) stablecoins (and can be repaid in any combination of the two).
Arch promises that it won’t touch or reloan customer funds for any reason. This is an important distinction that sets it apart from other crypto lenders such as BlockFi, Celsius Network and Genesis Global Trading, which have all been affected by liquidity issues in the past.
The company’s target customers are higher income individuals who invest heavily in alternative assets. They may have been discouraged by traditional lenders in the past, so Arch is hoping to offer them a more suitable option.
In the future, Arch plans to expand its offering by allowing other alternative assets as collateral. The capital raised in the funding round will help the firm to achieve this, as well as to expand the team and financial partnerships. Some of the funds will also be lent out.
Co-founder and CEO Dhruv Patel said: “Arch is committed to providing greater access to capital through our lending platform, allowing people to leverage their alternative asset portfolios to unlock value and increase liquidity. We’ve seen an increasing demand for crypto-backed loans, and we’re committed to providing an easy, transparent, and secure platform for borrowers.”