The 50 Most Interesting Companies In Bitcoin's History: 50/50
Arch
The Idea: Rebuild trust in crypto lending after the 2022 wipeout. Arch offers over-collateralized, Bitcoin-backed loans with no rehypothecation of collateral, qualified custody through Anchorage Digital, and full regulatory compliance (NMLS-licensed). The thesis: crypto holders should be able to access liquidity without selling their assets, and lenders should never gamble with depositor collateral.
Early Traction: Launched into a market still reeling from the collapses of BlockFi, Celsius, and Voyager. Raised $2.75M seed from Castle Island Ventures and Tribe Capital in late 2022. Attracted attention precisely because founders chose the worst possible moment to start a crypto lending company, signaling conviction. Former Grayscale CEO Michael Sonnenshein joined as an advisor.
Peak Stats: Raised $75M total ($5M equity + $70M debt facility backed by Galaxy) in August 2024 seed round led by Morgan Creek Digital and Castle Island Ventures with participation from Galaxy Ventures and BitGo Ventures. Loans up to 60% LTV starting at 8.49% APR. $250M in insurance coverage through Anchorage Digital custody.
Status Today: Active and growing. Expanding beyond crypto-backed loans into broader alternative asset lending, including pre-IPO equity collateral. Exploring Bitcoin mining investment products to help holders reduce tax exposure. Building institutional partnerships and scaling origination volume rapidly as the crypto lending market recovers.
Why It Matters:
Arch is the post-crisis answer to the question of whether crypto lending can exist responsibly. Born in the wreckage of BlockFi, Celsius, and Voyager, Arch deliberately chose the opposite of every practice that killed those platforms: over-collateralization instead of leverage, qualified custody instead of self-custody of client funds.