Arch Lending plans to accept tokenized stocks as loan collateral
Arch Lending moves toward tokenized equity loans
Crypto lender Arch Lending plans to offer loans backed by tokenized stocks, saying demand for credit against these assets is growing. Co-founder and chief revenue officer Himanshu Sahay laid out the plans during an appearance on Cointelegraph's Chain Reaction podcast.
Sahay said the lender intends to enter the tokenized equity lending market "pretty soon," pointing to a gap in the market. While tokenized equities have grown quickly over the past year, he noted that lending against those assets remains limited.
Key numbers and details
- Arch already offers loans backed by tokenized gold assets from Paxos and Tether.
- Bitcoin still makes up more than 80% of Arch's existing loan book.
- Interest in XRP as collateral has grown, particularly among US-based borrowers.
- Tokenized equities cited as potential collateral include those issued by Superstate, Robinhood, and Securitize.
- The total value of distributed tokenized stocks has risen to roughly $3.15 billion, up from about $630 million a year ago, according to data from RWA.xyz.
Other lenders entering the tokenized stock market
Arch would not be the first lender to explore tokenized equity collateral. In February, Ondo Finance launched decentralized lending markets for two of its tokenized ETFs through an integration with the Morpho lending protocol, allowing users to borrow against tokenized versions of the SPDR S&P 500 ETF and Invesco QQQ on Ethereum.
Kraken made 10 xStocks eligible to back futures and margin positions in July. Coinbase launched its B20 stocks on the Base network in August, with price-feed infrastructure built to support uses including borrowing and lending in decentralized finance.
Why this matters
The tokenized equities market has expanded sharply, and lenders are increasingly looking for ways to let users borrow against these assets. Arch's move reflects a broader trend of traditional financial instruments being represented on blockchain networks and used in crypto lending products.
What is still unclear
The exact timeline for Arch's launch of tokenized equity lending products has not been specified beyond Sahay's description of "pretty soon." Details about which tokenized stocks would be accepted and under what terms have also not been disclosed.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.