Arch Lending Targets Tokenized Equities for Next Big Move

Arch Lending plans to expand its lending operations beyond cryptocurrencies and into tokenized equities. The company's co-founder and chief revenue officer, Himanshu Sahay, stated that Arch aims to enter this new market 'pretty soon'. Tokenized equities have grown rapidly over the past year, with distributed tokenized stock value reaching about $3.15 billion, up from roughly $630 million a year earlier.

The push toward equity-backed lending is driven by the growing adoption of onchain stocks. Platforms like Ondo Finance and infrastructure providers tied to Ethereum-based lending protocols are already emerging in this space. Arch's current loan book is still dominated by crypto collateral, with Bitcoin making up more than 80% of exposure.

Arch has also seen an uptick in demand for XRP as collateral, particularly from US borrowers. The company is taking a cautious approach to expanding into tokenized equities, building operational and risk infrastructure needed to support assets with distinct market behavior compared to traditional crypto benchmarks.