Summary:
Onramp partners with Arch to offer USD loans backed by bitcoin collateral.
Clients enjoy white-glove service with 24/7 support.
Segregated & non-rehypothecated collateral ensures maximum security.
Flexible terms with up to 50% Loan-to-Value (LTV) and no early repayment penalties.
Future plans to integrate multi-institution custody into the lending product.
New Lending Product for Onramp Clients
Onramp, a bitcoin-focused financial services firm, has announced a new partnership with Arch to offer USD loans secured by bitcoin collateral. This innovative product aims to provide clients with a seamless line of credit that includes white-glove service, segregated addresses, and non-rehypothecated collateral.
Insights from Onramp's CEO
Michael Tanguma, the CEO of Onramp, expressed excitement about the collaboration:
"As we expand our suite of bitcoin financial services, we're thrilled to partner with Arch, a team that shares our vision for how bitcoin custody and lending should evolve. This product gives our clients the flexibility to tap into the value of their bitcoin holdings while maintaining high standards of security and service."
Arch's Commitment to Security
Dhruv Patel, CEO of Arch, emphasized the institutional-grade capabilities offered through this partnership:
"By partnering with Onramp, we're bringing institutional-grade capabilities - like segregated collateral and rigorous address authentication - to a broader segment of bitcoin holders."
Key Features & Benefits
- White-Glove Service: Arch provides dedicated customer service with 24/7 support.
- Segregated & Non-Rehypothecated Collateral: Clients' bitcoin is held in separately verified addresses for maximum transparency and security.
- Security & Compliance: Collateral is stored with a leading custodian, Anchorage, ensuring robustness and compliance across US states and international jurisdictions.
- Flexible Loan Terms: Access up to 50% Loan-to-Value (LTV) with two-year fixed terms and no early repayment penalties.
- Transparent Liquidation Process: Capped at 50% LTV, with margin calls at 60% LTV and automated liquidations at 70% LTV.
- Future-Ready Collaboration: Plans to migrate the offering to Onramp's multi-institution custody standard as it evolves.
Arch sources capital for these loans from a traditional finance CLO facility, ensuring reliable liquidity. Clients can receive loan proceeds in USD or select stablecoins, with an option to roll over the loan at the end of each term.
About Onramp
Onramp provides top-tier financial products and solutions for high-net-worth individuals and institutions looking to invest in bitcoin while minimizing counterparty risk.
About Arch
Arch is dedicated to delivering secure, reliable, and transparent liquidity solutions in the digital asset lending space. Their policies ensure clients benefit from a white-glove experience and industry-leading security.
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