- Arch Lending is a platform that wants to change how crypto loans work.
- However, they are mostly for people in the United States.
One of the perks of the crypto industry is that it allows users to take loans. However, there are many problems associated with the sector. It ranges from regulatory issues to collateral. Apparently, this crypto loan platform named Arch Lending plans to change how things work.
What is Arch Lending?
- Arch Lending is a new borrowing platform that allows you to use your crypto assets as collateral to take out fiat USD and USDC loans. Its headquarters is in the United States, and it is mostly for US customers. Apparently, the creation of this new crypto lending platform is a merger between traditional finance and the crypto industry. It implements this by allowing startup equity shares to serve as loan collateral.
- Many people consider Arch Lending as revolutionary due to the method they employ in giving out loans. Apparently, the occurrence of downfalls such as that of FTX and the rest serves as guidance. So, they are making security and compliance a very crucial part of their operations.
- In the United States, this crypto lending platform doesn’t want to break compliance with the regulatory authorities. Furthermore, they also keep their customer assets in BitGo.
Features of Arch Lending
- Many things differentiate this crypto lending platform from others, including its features. So, let’s take a deep dive into the features.
- Simplicity is one of the key features of this lending platform. Apparently, many do not really consider Arch Lending as a core crypto lending platform. This is because it keeps everything simple by giving out their loans in USDC. They also provide loans in fiat — Allowing you to withdraw directly to your bank account.
- Startup Equity-Backed Loans are a feature of this lending platform that one might not find in other platforms. Apparently, this key feature allows employees of high-growth startups to put up their shares as collateral. Furthermore, the APR is usually between 10% and 15% against your shares.
- Self-repaying loan feature. So, this feature from Arch Lending is upcoming, but it is one of the best things about this platform. They will use the yield from your collateral to automatically pay down your loan over time. So, the amount of interest you pay on their loans reduces drastically.
Who Is the Target Market of This Lending Platform
- While Arch Lending promises to become a revolutionary force in the crypto lending sector, it has some limitations. First, only those in the United States can use this platform. Apparently, this is due to their goal of meeting regulatory approval. Maybe in the future, the platform can expand to other countries.
- Furthermore, this lending platform is for those who want to use their startup equity as collateral. In other words, employees or high-ranking officials in startups have the opportunity to get crypto loans at low interest rates.
Conclusion
Arch Lending has all the potential of taking the crypto industry by storm. It is a lending platform made for both individuals who want small and large loans. However, one of the disadvantages is that it is only for people living in the United States.
