Crypto-backed lender Arch Lending is preparing to roll out loans secured by tokenized equities, a move that would push the firm deeper into a corner of the credit market where issuance has exploded but borrowing options remain scarce.

The company’s co-founder and chief revenue officer, Himanshu Sahay, said on the Chain Reaction podcast that Arch expects to enter the space “pretty soon,” citing rising demand for credit against onchain representations of stocks and exchange-traded funds. He framed the expansion as a natural next step for a lender that has already moved beyond cryptocurrency collateral into tokenized real-world assets.

Arch launched loans backed by Paxos Gold and Tether Gold in recent weeks, according to Sahay. But the…