The crypto industry may try to pretend that the collapses of 2022 are a distant memory, but the lending sector has not recovered from the catastrophic implosion of firms like BlockFi and Genesis, which provided loans to customers in exchange for often shaky collateral. Now, a growing startup thinks it can help reinvigorate the sector—while also ensuring it doesn’t suffer the same fate as its predecessors.
New York–based Arch, founded by finance veterans Dhruv Patel and Himanshu Sahay, announced on Thursday that it had raised a $5 million equity seed round for its crypto lending practice co-led by Morgan Creek Digital and Castle Island Ventures, along with a $70 million debt facility funded by Galaxy, which will serve institutional clients and individual investors. Arch previously raised $2.75 million from Castle Island and Tribe Capital in late 2022.
