Arch Lending Eyes Tokenized Stocks for Next Collateral Market Play

Crypto lender Arch Lending is preparing to enter the market for loans backed by tokenized equities, according to its co-founder and chief revenue officer Himanshu Sahay. The move comes as the market for onchain stocks expands, with Sahay predicting that more lenders will soon participate in providing credit against these assets.

Arch Lending has already expanded beyond cryptocurrencies into tokenized real-world assets, offering loans backed by Paxos Gold and Tether Gold. However, crypto still dominates its existing loan book, with Bitcoin accounting for over 80% of the portfolio.

Sahay pointed to the rapid growth of tokenized equities, citing figures from RWA.xyz that show distributed tokenized stock value has climbed to around $3.15 billion from roughly $630 million a year ago. He also noted growing interest in XRP as collateral, particularly among US borrowers.