New York-based crypto lending startup Arch Lending has announced a significant funding round, raising a total of $75 million.
The company, founded in February 2022, secured $5 million in an oversubscribed equity seed round and an additional $70 million in a loan financing facility.
The equity round was co-led by Morgan Creek Digital and Castle Island Ventures, with participation from Galaxy Ventures and BitGo Ventures, among others.
Galaxy provided the loan financing facility, which is expected to grow with increased demand and could potentially be securitized in the future.
Arch Lending’s platform offers crypto-backed loans using BTC, ETH and SOL as collateral.
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The company emphasizes that it does not rehypothecate any collateral, a practice that has led to issues for other crypto lenders in the past.
“We’ve witnessed first-hand the rise in demand for borrowing against crypto collateral as the asset class has matured,” Co-founder and CEO Dhruv Patel stated.
Notably, the crypto lending sector has faced significant challenges in recent years, with several high-profile collapses shaking investor confidence.
The funding news comes at a time when the crypto industry is still recovering from recent setbacks.
As the sector continues to evolve, developments like this will likely be a topic of discussion at upcoming industry events, such as Benzinga’s Future of Digital Assets conference scheduled for Nov. 19.
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