Arch Lending, founded in February 2022 by Himanshu Sahay and Dhruv Patel, has issued over $350 million in loans without client losses. The company attributes this performance to a business model that strictly prohibits rehypothecation, ensuring client collateral is never lent, staked, or redeployed.
The firm utilizes Anchorage Digital for asset custody, separating lending operations from asset storage. Anchorage Digital is a federally chartered digital asset bank, having received its charter in January 2021. Collateral is kept in segregated cold-storage wallets, and transfers require multi-party verification.
The lending model uses an initial loan-to-value ratio of up to 60 percent. If the ratio reaches 70 percent due to market fluctuations, margin calls are triggered. Borrowers have a 24 to 48-hour period to provide additional collateral or reduce the loan balance. The company also maintains a $100 million insurance policy via Lloyd’s of London.
Arch Lending operates under NMLS registration number 2637200 and holds licenses in 44 US states. The firm incorporates bankruptcy-remote structures to protect client assets from being included in a general creditor pool in the event of company insolvency.
