A fintech-based lending company Arch recently announced its very first financial product on January 18.
Dhruv Patel, co-founder and CEO of the company, said in an interview that last year the company received funding of 2.75 million USD in a funding round. With the help of this capital, the company intends for team expansion and set further financial partnerships. The company also has plans for some lending of funds.
The company facilitates single loans with multiple combined alternative assets for collateralization to users. Loans provided by the company, founded in February last year, are safeguarded by kripto assets security company BitGo. In addition, these loans have denominations of USD or USDC stablecoin meaning the amount could be repaid in these options.
Arch CEO while citing the recent instances of company’s facing liquidity issues said that the fintech firm does not act to use or loan the customer funds again.
According to Patel, the target market for Arch is higher-income or wealthier individuals who invest substantially in alternative assets but may be put off by conventional lenders and financial institutions.
Over 80% of young investors have indicated an interest in investing in alternative assets, and today, nearly 50% of them own cryptocurrencies, according to Patel. “With Arch, people may utilize their crypto assets as collateral for loans, giving them access to finance to accelerate their financial journeys by making other investments or significant purchases.”
Additionally, Arch will utilize the money to keep adding regulatory permits, which have a high legal fees. According to the startup’s co-founder and chief technology officer, Himanshu Sahay, it is currently allowed to do business in 31 states. Among those who invested in Arch were Tribe Capital, Castle Island Ventures, Picus Capital, and Global Founders Capital.
In order to give borrowers access to a wide range of assets as collateral, Arch is starting with cryptocurrencies but intends to eventually also employ publicly traded equities, equity interests in companies that are preparing for an initial public offering (IPO), and real estate. The startup is also taking into account additional categories of financial technology, such cash management software.
Andrew, mezuniyet sonrası kripto para birimlerine olan ilgisini geliştiren bir blok zinciri geliştiricisidir. Ayrıntıların keskin bir gözlemcisidir ve bir geliştirici olmakla birlikte yazma tutkusunu paylaşır. Blockchain hakkındaki arka uç bilgisi, yazılarına benzersiz bir bakış açısı kazandırmasına yardımcı oluyor.
Source: https://www.thecoinrepublic.com/2023/01/20/arch-launches-crypto-lending-product-following-the-2-75mn-usd-funding/