Arch Lending to lend against tokenized equities
RWA Signal Insight
InfrastructureArch Lending is preparing to expand its collateral offerings to include tokenized equities, signaling a shift toward broader financial utility for onchain assets. Co-founder Himanshu Sahay confirmed the upcoming integration as the market for tokenized stocks has surged to $3.15 billion, up from $630 million just one year ago. While Bitcoin currently comprises over 80% of Arch’s loan book, the firm is actively diversifying into real-world assets, including recent additions like Paxos Gold and Tether Gold. This move aligns with broader industry trends where platforms like Kraken and Coinbase are increasingly integrating tokenized stocks into margin and futures trading. By enabling credit against these assets, Arch aims to provide liquidity to investors without requiring them to liquidate their onchain equity positions. The expansion reflects a growing institutional appetite for using tokenized securities as productive collateral within decentralized finance ecosystems. As more lenders enter the space, increased competition is expected to drive further adoption and utility for tokenized equities across the blockchain landscape.
Key points
- Tokenized equity market value grew fivefold to $3.15 billion over the past year.
- Arch Lending plans to accept tokenized stocks as collateral to diversify beyond Bitcoin.
- Arch currently supports tokenized gold and is expanding its real-world asset collateral base.
- Market participants like Kraken and Coinbase are already integrating tokenized stocks into DeFi infrastructure.
Background
Arch Lending is a digital asset-focused lending platform that allows users to secure loans by using their crypto holdings as collateral. The protocol functions by providing liquidity to borrowers who wish to retain their long-term asset exposure while accessing capital for other investments or operational needs.