Arch Lending Targets $3.15 Billion Tokenized Stock Collateral Market
Arch Lending plans to accept tokenized equities as collateral, joining a market that grew fivefold to $3.15 billion in one year.
Key points
- Arch Lending plans to accept tokenized equities as collateral for new loans.
- The tokenized stock market grew from $630 million to $3.15 billion in one year.
- Bitcoin accounts for over 80% of Arch Lending's current loan book.
Arch Lending will accept tokenized equities as collateral for its onchain loans. The firm aims to capture a market that expanded to $3.15 billion within twelve months.
Himanshu Sahay stated this strategy on Cointelegraph’s Chain Reaction podcast. The move follows the lender’s recent expansion into tokenized real-world assets.
Crypto remains the dominant asset class
Bitcoin still represents more than 80% of Arch’s total loan book. Sahay noted that XRP is also gaining traction among US borrowers.
The lender recently launched loans backed by Paxos Gold and Tether Gold. These additions diversify the platform beyond standard cryptocurrency holdings.
Competitors already offer equity-backed credit products
Ondo Finance launched DeFi lending markets for tokenized ETFs in February. Users can borrow against SPDR S&P 500 and Invesco QQQ tokens on Ethereum.
Kraken enabled ten tokenized stocks for futures and margin positions in July. Coinbase also launched B20 stocks on Base to support DeFi borrowing.
Tokenized equities market value surged recently
RWA.xyz data shows distributed tokenized stock value reached $3.15 billion. This figure represents a significant increase from $630 million a year ago.
This growth indicates strong demand for onchain equity collateral. Arch’s entry signals broader institutional adoption of these financial instruments.
