The Bitcoin Treasuries Podcast with Tim Kotzman Arch Lending CEO Dhruv Patel on Bitcoin Backed Loans
Apr 1, 2025
Dhruv Patel, CEO and Co-founder of Arch Lending, shares his fascinating journey from a fintech startup to revolutionizing Bitcoin-backed loans. He discusses the strategic advantages of using Bitcoin as collateral and how it helps borrowers avoid liquidating assets. The conversation delves into the diverse clientele Arch serves, from individuals to businesses, and the impact of interest rates on lending practices. Dhruv also highlights partnerships, especially with OnRamp, and explores Bitcoin's adoption trends among both private and public companies.
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Dhruv's Bitcoin Discovery Journey
- Dhruv Patel discovered Bitcoin as a curious college student at Berkeley in 2017, exploring the technology and its growing ecosystem.
- Early exposure came through promotions by Coinbase and watching Bitcoin's volatile price rise and fall during his time at Bridgewater Associates.
Bitcoin as Superior Collateral
- Bitcoin's 24/7 liquidity makes it a better lending collateral than stocks, facilitating streamlined mark-to-market valuations.
- Institutional acceptance of lending against Bitcoin improved after ETF approvals and with capital providers like Galaxy Digital backing loans.
Buy Bitcoin, Borrow, Don't Sell
- Borrow against Bitcoin to finance expenses without selling, preserving long-term appreciation.
- Use Bitcoin-backed lines of credit to maintain asset growth while accessing necessary liquidity for life or business costs.