Arch Lending Targets Tokenized Stocks for Next Credit Market Expansion

Arch Lending is preparing to expand its lending services to tokenized stocks and ETFs. According to Himanshu Sahay, co-founder and chief revenue officer of Arch Lending, this move aims to address the limited credit availability for onchain stock assets.

The company's current loan book is still dominated by crypto collateral, with Bitcoin making up more than 80% of exposure. However, there is growing interest in using XRP as collateral, particularly among US borrowers.

Tokenized equities lending is already emerging via platforms like Ondo Finance and infrastructure providers tied to Ethereum-based lending protocols. Arch's shift from crypto-only lending to onchain stocks reflects the company's goal of expanding its collateral menu while also developing a deeper understanding of tokenized equity markets.