TechFlow news, August 22 — According to Fortune, crypto lending platform Arch has announced the completion of a $5 million seed round led jointly by Morgan Creek Digital and Castle Island Ventures. Additionally, Galaxy has provided $70 million in debt financing. The funds will be used to serve institutional clients and individual investors. Founded in February 2022 by financial industry veterans Dhruv Patel and Himanshu Sahay, Arch aims to revitalize the crypto lending sector, which was shaken by the collapses of firms like BlockFi and Genesis.
Arch co-founder Dhruv Patel said the company adopts a conservative strategy, accepting only Bitcoin, Ethereum, and SOL as collateral. It does not re-pledge assets, instead using BitGo to custody collateral on behalf of clients. Max Bareiss, Vice President of Galaxy’s Lending division, revealed plans to securitize the debt financing, enabling institutional investors to purchase exposure through crypto-native gateways and trade it in secondary markets. Arch currently has five full-time employees and plans to expand its team and launch additional investment products later this year.
