NEW YORK–(GOOD BUSINESS)–Arch, the first lender to provide a single loan to other assets, announced its official launch today. With the increase in individual investors holding their wealth in other assets, and examples of assets under management to achieve $17.2 million by 2025Arch aims to meet the needs of customers for loans backed by those assets, starting with crypto and expanding to public securities, similar to unicorns first IPO and real estate.
In America, there are ~36.7M households under 55s hold between $250K and $3.49M in investable assets, and of these households, an increasing number of are increasing their portfolio allocation to be more weighted in assets beyond stocks, including crypto and other alternatives. Many renters are diversifying their portfolios and holding a large portion of their wealth in other assets, but traditional lenders are often slow to adopt them. new technology and exclude these people from getting credit. To date, there is no specific company that offers a single loan on other consolidated assets.
“Today, almost 50% of young investors own cryptocurrency, and more than 80% have mentioned they like to invest in other assets,” said Dhruv Patel, CEO of Arch. “With Arch, individuals can use crypto assets as collateral for loans, allowing the opportunity to get capital to make other investments or make other big purchases to speed up their financial journey.”
Arch allows investors to make a single loan against their entire assets, receive the loan in USD or stable coins (USDC), and repay the loan in any combination of the two. . Arch takes a law-first approach and is fully compliant with the jurisdictions in which it operates, working closely with the improving the US regulatory landscape to create a sustainable business. Unlike other lending companies, Arch manages customers’ crypto assets 1:1 with BitGo, the leader in digital asset management . Arch does not touch customer money. Additionally, Arch expands exposure to any person or asset. Arch has released their first loan for a total of $250,000.
Arch is led by co-founders Dhruv Patel (CEO) and Himanshu Sahay (CTO). As a former employee at Brex, Patel worked in the Capital Markets, Credit, and Operations team and helped launch their credit products. Sahay has an extensive background in engineering at high-tech companies, building products at Snapchat, Tinder, and Bird. Patel and Sahay faced challenges in obtaining a loan against their crypto and equity in pre-IPO companies from traditional financial institutions, and looking for a solution, they founded Arch.
“The next generation of investors are going beyond traditional investment strategies to include other assets and diversify their portfolios, but not yet continue with credit services. Arch has created an unconventional way to lend against other assets, and supporting Dhruv and Himanshu’s mission to open this door for investors was an easy decision,” said Sean. Judge, a former investor at Castle Island Ventures.
In addition to lending, Arch intends to provide a full range of financial products and services aimed at individual investors with a large portion of their wealth in other assets to become a single financial center for the next generation. To date, Arch has raised $2.75M from Tribe Capital, Castle Island Ventures, Picus Capital, Global Founders Capital, and others, as well as management from Brex, Uniswap, Snap, and Clutter.
Founded in February 2022, Arch is an upcoming financial technology company that enables other asset owners to access debt to increase their financial potential. Arch accepts other assets as collateral and offers individuals loans that traditional lending services do not, giving them access to financing. basis to make other investments or other large purchases. With a fast approval process, US legal process, and competitive rates, Arch makes it easy to get a loan against other assets.