Arch Lending Targets Tokenized Stocks as Next Collateral — SkimNews
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- Arch Lending plans to enter the tokenized equity credit market, making tokenized stocks and ETFs eligible as collateral for loans, according to Sahay.
- Arch's existing loan book is more than 80% Bitcoin, with the lender recently seeing growing interest in XRP as collateral among US borrowers.
- Arch has already expanded beyond crypto into tokenized real-world assets, launching loans backed by Paxos Gold and Tether Gold in recent weeks.
- Ondo Finance launched DeFi lending markets in February for two of its tokenized ETFs — the SPDR S&P 500 ETF and Invesco QQQ — via an integration with Morpho on Ethereum.
- Kraken made 10 xStocks eligible to back futures and margin positions in July, and Coinbase's B20 stocks launched on Base in August with infrastructure aimed at DeFi borrowing and lending.
- Tokenized equities have grown sharply, with distributed tokenized stock value climbing to about $3.15 billion from roughly $630 million a year ago, per RWA.xyz data.
Why it matters: If Arch moves forward, tokenized stocks would become a third asset class at the lender alongside Bitcoin-heavy crypto loans and gold-backed RWAs, positioning the firm to capture a slice of a market that has quintupled to $3.15 billion in a year and is already attracting competitors like Ondo, Kraken, and Coinbase.
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