Arch Lending Expands Tokenized Stock Mortgage Business

Cryptocurrency lending institution Arch Lending plans to expand its loan business using tokenized stocks as collateral. Himanshu Sahay, co-founder and Chief Revenue Officer of Arch, stated that the institution plans to enter this market "soon," noting the demand for credit backed by tokenized stocks. Sahay mentioned that tokenized stocks have seen rapid growth over the past year, but loans against such assets remain limited. He anticipates that more lending institutions will enter this market in the future, referencing tokenized stocks issued by organizations such as Superstate, Robinhood, and Securitize. Arch has expanded from cryptocurrency to tokenized real-world assets, recently launching loan products backed by Paxos Gold and Tether Gold. However, cryptocurrency still constitutes the vast majority of Arch's existing loan portfolio, with Bitcoin accounting for over 80%. Sahay also noted a recent increase in interest in using XRP as collateral, particularly from U.S. borrowers. In February, Ondo Finance launched a DeFi lending market for its two tokenized ETFs through integration with the lending protocol Morpho; in July, Kraken included 10 types of xStocks in its futures and margin collateral; in August, Coinbase's B20 stock went live on Base.

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