Arch Lending Targets Tokenized Stocks for Collateral — SkimNews
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- Arch Lending is eyeing tokenized stocks as its next collateral market, planning to expand beyond its current crypto-heavy loan book.
- Arch has already launched loans backed by Paxos Gold and Tether Gold in recent weeks, according to Sahay.
- Bitcoin still accounts for more than 80% of Arch's loan book, though the lender has seen growing interest in XRP as collateral, particularly among US borrowers.
- Ondo Finance launched DeFi lending markets for tokenized versions of the SPDR S&P 500 ETF and Invesco QQQ through Morpho in February.
- Kraken made 10 xStocks eligible to back futures and margin positions in July, while Coinbase's B20 stocks launched on Base in August with price-feed infrastructure built for DeFi borrowing and lending.
- The distributed tokenized equities market climbed to roughly $3.15 billion from about $630 million a year ago, per RWA.xyz data.
Why it matters: For Arch, tokenized stocks would supplement a book still 80%+ Bitcoin-collateralized — a concrete pivot toward real-world assets. For the broader market, Arch joins Ondo, Kraken, and Coinbase in building credit rails on a tokenized equities segment that grew roughly 5x to $3.15 billion over the past year.
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