Arch Lending Sets New Standard in Crypto Lending Safety

Arch Lending, co-founded by Himanshu Sahay and Dhruv Patel in February 2022, is making a case that crypto-backed borrowing can work safely. The firm has originated over $350 million in loans with no reported client losses.

The core problem with Celsius, Voyager, and BlockFi wasn't their business model but how they managed assets behind those loans. Celsius rehypothecated customer deposits, taking the deposited crypto to lend it out again or use it as collateral for its own trades.

Arch Lending's solution is a strict zero-rehypothecation policy. Client collateral is never lent, staked, or redeployed. Custody is handled through Anchorage Digital, a federally chartered digital asset bank in the US.