Market capitalization surges to $3.15 billion as tokenized stocks become a new favorite in credit markets

Arch Lending is pivoting its strategic focus toward tokenized equity-backed lending to address a growing market demand for diverse collateral options. While Bitcoin currently dominates over 80% of the firm's existing loan business, the company is actively expanding its RWA portfolio by integrating assets like Paxos Gold and Tether Gold. This move aligns with a broader industry trend where tokenized equity market capitalization has surged from approximately $630 million to $3.15 billion over the past year. Major players are intensifying competition in this space, with Ondo Finance partnering with Morpho to utilize tokenized SPY and QQQ ETFs on Ethereum for DeFi lending. Additionally, Kraken has enabled futures and margin positions backed by xStocks, while Coinbase has listed B20 stocks on its Base platform. These developments indicate that tokenized equity is becoming the fastest-growing segment within the RWA sector. By bridging traditional financial instruments with crypto-native platforms, these institutions are effectively blurring the lines between legacy finance and decentralized lending protocols.