Tokenized Stock Market Value Hits $3.15 Billion, and Crypto Lender Arch Wants In

Crypto-backed lender Arch Lending is preparing to roll out loans secured by tokenized equities, a move that would push the firm deeper into a corner of the credit market where issuance has exploded but borrowing options remain scarce.

The company's co-founder and chief revenue officer, Himanshu Sahay, said on the Chain Reaction podcast that Arch expects to enter the space "pretty soon," citing rising demand for credit against onchain representations of stocks and exchange-traded funds. He framed the expansion as a natural next step for a lender that has already moved beyond cryptocurrency collateral into tokenized real-world assets.

Arch launched loans backed by Paxos Gold and Tether Gold in recent weeks, according to Sahay. But the firm's existing loan book remains overwhelmingly tied to digital assets: Bitcoin accounts for more than 80% of exposure. Within that crypto-heavy portfolio, borrower preferences are shifting. Sahay said the lender has observed growing interest in using XRP as collateral, particularly among borrowers in the United States.

That detail matters because collateral selection is not merely about market value. Lenders weigh custody arrangements, valuation reliability, liquidation mechanics, and regional borrower appetite before accepting an asset. A rise in XRP usage, Sahay suggested, signals that risk models and market infrastructure around that token are becoming more robust.