Bitcoin Loans Masterclass with Himanshu Sahay of Arch Lending — New Foundations E46

In this episode of New Foundations, Chase Palmieri interviews Himanshu Sahay, Co-founder and CTO of Arch, a Bitcoin-backed lending platform. They explore the concept of Bitcoin as pristine collateral, the mechanics of Bitcoin-backed loans, and the evolving landscape of borrowing rates.

The conversation delves into the unique advantages of Bitcoin over traditional collateral, the importance of over-collateralization, and the implications for corporate treasuries. Sahay shares insights on market trends, the future of Bitcoin lending, and the significance of user experience in the crypto space.TakeawaysBitcoin is considered pristine collateral due to its predictability and liquidity.Arch offers over-collateralized loans to mitigate risk.The default rate for Bitcoin-backed loans is expected to be zero.Bitcoin's 24/7 trading allows for quick liquidation compared to traditional assets.Borrowing rates for Bitcoin loans have been decreasing and are expected to continue to do so.Margin calls are a normal part of the loan process and can be managed effectively.Arch's user experience is designed to be simple and accessible for all users.Corporate treasuries are increasingly adopting Bitcoin as a part of their asset base.The regulatory landscape for Bitcoin lending is evolving, with more institutions entering the space.Education is crucial for users to understand Bitcoin-backed loans and their benefits.If you want to understand how bitcoin changes the lending landscape, this conversation is a masterclass.📌 Book a free consultation with Acropolis: https://www.acropolistreasury.com/bookChapters

00:00Bitcoin as Pristine Collateral04:22Comparing Bitcoin to Traditional Collateral08:24Lending Against Other Crypto Tokens09:41Understanding Borrowing Rates14:37Loan-to-Value Ratios Explained17:11Margin Calls vs. Liquidation19:27Upsizing Loans with Bitcoin Appreciation22:16Market Demand for Bitcoin Loans24:04The Appeal of Lending Dollars vs. Buying Bitcoin27:03Unlocking Value in Bitcoin Lending29:32The Rise of Bitcoin Treasury Companies30:41Innovative Lending Strategies: Buy, Borrow, Die32:09Navigating Inheritance and Bitcoin Loans33:26Competition and Collaboration in Bitcoin Lending37:10The Future of Bitcoin Scarcity and Lending38:04The Genesis of Arch: A Personal Journey41:50Corporate Treasuries and Bitcoin Utilization44:36Regulatory Landscape for Bitcoin Lending46:47Consumer Experience: Lessons from Tech GiantsNew Foundations: a weekly podcast covering the need for businesses to embrace Bitcoin, as both a reserve asset and a disruptive settlement layer. Hosted by Chase Palmieri with rotating guests. The show is presented by Acropolis, the Bitcoin treasury platform for the digital age. Visit acropolistreasury.com to learn more.