According to Woofun AI, Arch Lending is shifting its strategic focus to tokenized stocks. Co-founder Himanshu Sahay confirmed that the agency will soon launch credit products using tokenized equity as collateral to fill the gap in the market.
Although Sahay pointed out in the Chain Reaction podcast that tokenized equity has developed rapidly in the past year, the related loan business is still limited. Arch has taken the lead in expanding to real-world assets (RWA) and has launched Paxos Gold and Tether Gold secured loans in recent weeks.
According to data compiled by Woofun AI, Bitcoin still accounts for more than 80% of Arch's current loan business, and US borrowers have recently preferred to use XRP as collateral. Sahay mentioned tokenized shares issued by Superstate, Robinhood (HOOD.US), and Securitize, predicting that more institutions will follow suit.
The industry is also fiercely competitive. In February of this year, Ondo Finance and Morpho launched tokenized versions of SPDR S&P 500 ETF (SPY.US) and Invesco QQQ (QQQ.US) on the Ethereum network as collateral for DeFi loans. In July, Kraken allowed 10 xStocks assets to support futures and margin positions; in August, Coinbase (COIN.US) launched B20 shares on the Base platform, and its price feedback system is designed to support various applications including DeFi lending.
Market size data validates this trend. The total value of tokenized shares has surged from around $6.3 billion a year ago to $31.5 billion now. As application scenarios expand from simple lending to margin trading, tokenized equity is becoming the fastest growing segment in the RWA circuit, further blurring the line between traditional financial institutions and crypto-native platforms.