Arch Lending Targets Tokenized Stocks for New Collateral Offering

Crypto lender Arch Lending announced its intention to enter the tokenized equity market, aiming to offer loans secured by on‑chain stocks. The move follows rapid growth in tokenized equities and increasing interest from borrowers seeking credit against these assets.

Strategic Shift Toward Tokenized Equities

Arch co‑founder and chief revenue officer Himanshu Sahay told Cointelegraph’s Chain Reaction podcast that the company will launch tokenized‑stock‑backed loans “pretty soon.” He highlighted a clear demand for credit against tokenized stocks, noting that while the supply of such assets has expanded, lending against them remains limited.

Current Asset Landscape

Arch’s loan portfolio is still dominated by cryptocurrencies, with Bitcoin (BTC) representing over 80% of exposure. The lender has recently added interest in XRP as collateral, particularly among U.S. borrowers. In the past weeks, Arch also introduced loans backed by tokenized gold products from Paxos Gold and Tether Gold.

Broader Market Context

Tokenized stocks and ETFs are already appearing in lending and collateral products. Earlier this year, Ondo Finance integrated tokenized versions of the SPDR S&P 500 ETF and Invesco QQQ into DeFi lending via Morpho. Kraken has enabled its 10xStocks to serve as collateral for futures and margin positions, while Coinbase’s B20 stocks on Base include price‑feed infrastructure for DeFi borrowing.

Growth of the Tokenized Equity Market

Data from RWA.xyz shows the total value of distributed tokenized stocks rising to roughly $3.15 billion, up from about $630 million a year earlier. Issuers such as Superstate, Robinhood and Securitize are among the providers of tokenized equities that Arch may target.

Outlook

Sahay expects additional lenders to join the space, expanding credit options for tokenized stock holders. Arch’s entry could accelerate the integration of real‑world assets into on‑chain finance.