Arch Lending Prepares to Offer Loans Against Tokenized Equities

Arch Lending is planning to expand its credit offerings beyond crypto-only collateral by offering loans backed by tokenized equities. The firm's co-founder and chief revenue officer, Himanshu Sahay, stated that demand for credit against tokenized stocks is growing as the asset class scales.

The growth in tokenized equities over the past year has been rapid, with distributed tokenized stock value climbing to about $3.15 billion, up from roughly $630 million a year earlier. However, lending capacity against these assets still appears limited, according to Sahay.

Arch Lending has already expanded beyond cryptocurrencies by offering loans backed by tokenized real-world assets such as Paxos Gold and Tether Gold. Bitcoin accounts for more than 80% of the loan book, but there is growing interest in XRP among US borrowers.