Arch, a new lending platform providing single loans across combined alternative assets, has officially launched.
The company enables alternative asset owners access to debt to maximise their financial potential. Arch accepts alternative assets as collateral, therefore offering loans that traditional lending services do not. The service hopes to grant investors ability to access capital to make investments or other large purchases.
Over 36 million US households under the age of 55 hold between $250,000 and $3.49million in investable assets. Furthermore, increasing amounts of households are adjusting their portfolio allocation. Many are adjusting for their portfolio to be more heavily weighted on assets other than stocks, instead focusing on crypto and other alternatives.
Investors are able to take out a singular loan across a number of assets. They have the option to receive the loan in either USD or stable coins (USDT). Borrowers are also able to pay the loan back using any combination of the two.
Aiming to differentiate itself from other lending providers, arch holds customers’ crypto assets 1:1 with digital asset custody service BitGo. The lending platform does not touch customer funds during the loan period.
Arch has already disbursed initial loans for an aggregate amount of $250,000 prior to its launch. The financial service provider also boasts an instant approval process, a US-based regulatory approach, and competitive rates.
Accelerating financial journeys with alternative loan options
Dhruv Patel, CEO of Arch, explained the space the fintech company aims to fill. Patel said: “Today, nearly 50 per cent of young investors hold cryptocurrency. Over 80 per cent have also stated they are interested in investing in alternative assets. With Arch, individuals can use crypto assets as collateral for loans, granting the ability to access capital to make other investments or make other large purchases to accelerate their financial journeys.”
Sean Judge, an early-stage investor at Castle Island Ventures, also commented on the launch. He said: “The next generation of investors are going beyond traditional investment strategies to include alternative assets and diversify their portfolios, but lending services haven’t kept up. Arch has created a seamless way to lend against alternative assets, and supporting Dhruv and Himanshu [Sahay]’s mission to open this door for investors was an easy decision.”
In addition to lending, Arch aims to provide financial products and services for individuals with a large portion of their wealth in alternative assets. Arch has currently raised around $2.75million from Tribe Capital, Castle Island Ventures, Picus Capital, Global Founders Capital, and more.