New Lending Product Enables White-Glove, Secure Access to Liquidity for Onramp Clients
DALLAS, TEXAS / ACCESS Newswire / February 20, 2025 / Onramp, a bitcoin-focused financial services firm built on the foundation of multi-institution custody, today announced a new partnership with Arch to deliver USD loans backed by bitcoin collateral. This new offering provides Onramp clients with a seamless line of credit, featuring white-glove service, segregated addresses, and non-rehypothecated collateral.
"As we continue to expand our suite of bitcoin financial services, we are thrilled to partner with Arch-a team that shares our vision for how bitcoin custody and lending should evolve," said Michael Tanguma, CEO of Onramp. "This product is designed to give our clients the flexibility to tap into the value of their bitcoin holdings while maintaining the high standards of security and service they expect from Onramp."
"By partnering with Onramp, we're bringing institutional-grade capabilities - like segregated collateral and rigorous address authentication - to a broader segment of bitcoin holders," said Dhruv Patel, CEO at Arch. "We look forward to continuing to innovate with Onramp, particularly around multi-institution custody, to define the future of bitcoin lending."
Key Features & Benefits
White-Glove Service: Arch manages customer service with a dedicated approach, offering 24/7 support to promptly address all client needs.
Segregated & Non-Rehypothecated Collateral: Each client's bitcoin is held in separately verified addresses, ensuring maximum transparency and security.
Security & Compliance: Collateral is stored with a leading qualified custodian, Anchorage, in a bankruptcy remote US-based trust. Arch is a fully compliant US-based entity, able to lend in most US states and international jurisdictions.
Flexible Loan Terms: Borrowers can access up to 50% Loan-to-Value (LTV), with two-year fixed terms, no early repayment penalties, and the ability to increase their line of credit in real time.
Transparent Liquidation Process: Credit available to Onramp clients is capped at 50% Loan-to-Value (LTV); margin calls occur at 60% LTV, with only the amount needed to bring the LTV back down to 50% automatically liquidated at 70% LTV.
Future-Ready Collaboration: While the current product does not yet leverage multi-institution custody, Arch and Onramp are committed to migrating this offering to Onramp's multi-institution custody standard as the product evolves.
Arch's capital for these loans is sourced 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 two-year term.
About Onramp
Onramp offers best-in-class financial products and solutions to onboard HNWI, family offices, and institutions to bitcoin. Focusing on reducing counterparty risk with multi-institution custody and providing a straightforward way to hold real bitcoin, Onramp's innovative platform and dedication to security make it the go-to choice for investors seeking an allocation.
About Arch
Arch is a digital asset lending platform committed to providing secure, reliable, and transparent liquidity solutions. With robust controls, segregated addresses, and non-rehypothecated collateral policies, Arch ensures that clients benefit from a white-glove experience and industry-leading security and an automated product experience.
For inquiries, please contact:
Michael Tanguma, CEO of Onramp Bitcoin
michael@onrampbitcoin.com
SOURCE: Onramp
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