Arch Lending eyes tokenized stocks as next collateral market
Arch Lending plans to begin offering loans backed by tokenized equities as onchain stocks gain traction. Co-founder Himanshu Sahay said demand for credit against tokenized stocks is growing, but lending options remain limited, and more lenders are likely to enter the market. Arch has already moved beyond crypto collateral into tokenized real-world assets, recently launching loans backed by Paxos Gold and Tether Gold. Crypto still makes up most of Arch’s loan book, with Bitcoin above 80%, though interest in XRP collateral is rising, especially among U.S. borrowers. The broader market for tokenized equities has expanded rapidly, reaching about $3.15 billion in distributed value from roughly $630 million a year earlier. Existing examples include Ondo’s DeFi lending for tokenized ETFs and collateral use cases from Kraken and Coinbase.
