Aug 22, 08:28 PM

Arch Secures $5 Million and $70 Million Debt Facility to Revive Crypto Lending After BlockFi and Genesis Collapse

New York-based startup Arch has secured $5 million in equity funding to revitalize the crypto lending sector, which has faced significant challenges following the collapse of major firms like BlockFi and Genesis in 2022. The funding round included participation from notable investors such as Morgan Creek and Galaxy, which also provided a $70 million debt facility to support Arch's operations. This initiative aims to address the complexities of crypto-backed lending as the market cautiously rebounds from previous failures. Arch's efforts come amid a broader trend of conservative approaches in the crypto credit markets, as firms like Galaxy and Kraken are now focusing on secured lending strategies.