Tether · Bitcoin · Cointelegraph
Arch Lending eyes tokenized stocks as next collateral market
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Arch Lending’s Himanshu Sahay said on Cointelegraph’s Chain Reaction podcast that the lender plans to move into tokenized equities as onchain stocks gain traction as collateral.
Key facts
- But crypto still dominates Arch’s existing loan book, with Bitcoin (BTC) accounting for more than 80%, Sahay said
- Arch Lending’s Himanshu Sahay said on Cointelegraph’s Chain Reaction podcast that the lender plans to move into tokenized equities as onchain stocks gain traction as collateral
- Arch has already expanded beyond cryptocurrencies into tokenized real-world assets, launching loans backed by Paxos Gold and Tether Gold in recent weeks, according to Sahay
- In February, Ondo Finance launched DeFi lending markets for two of its tokenized ETFs through an integration with lending protocol Morpho
Summary
Crypto lender Arch Lending plans to expand into loans backed by tokenized equities as the market for onchain stocks expands and lenders begin exploring new uses for the assets as collateral. Arch co-founder and chief revenue officer Himanshu Sahay told Cointelegraph’s Chain Reaction podcast that the lender plans to enter the market “pretty soon,” pointing to a need for credit against tokenized stocks. Sahay said tokenized equities have grown rapidly over the past year, but lending against the assets remains limited, and predicted that more lenders will enter the market. He pointed to tokenized equities issued by firms including Superstate, Robinhood and Securitize, predicting that multiple lenders will eventually participate in the market to provide credit against the assets.