DeFi platform Arch raised $5 million in seed round

In order to strengthen its platform, Arch, decentralized finance asset manager (DeFi) that facilitates exposure to cryptocurrencies and digital assets for passive investors, announced the closing of a seed round for 5 million dollars.

According to the firm, this round was led by Digital Currency Group and Upload Ventures, a former early-stage fund. SoftBank Latin America also had the participation of Soma Capital, GBV, Devlabs, Ripio Ventures and Platanus Ventures, as well as other angel investors.

“The financing will allow to refine the development of the platform, connect with key players in the passive investment market and promote a unique user experience for new investors who want to learn about the decentralized finance model,” explained the firm when announcing said survey.

Arch currently allows anyone to buy a basket of cryptocurrency assets for a single token, in a similar model to ETF purchases to gain broad exposure in the traditional financial market.

“Arch develops tokenized indices and products, which dramatically simplify the way people can build and manage a well-diversified crypto portfolio. In doing so, the platform allows investors to have passive exposure to digital assets and watch the portfolio grow without no need to spend time and energy on analysis or trading,” said Christopher Storaker, CEO of Arch.

The raising of this capital by Arch occurs in a context where cryptocurrencies have had significant falls in their value; however, the adoption of these instruments is beginning to have a greater impact in some countries.

For example, in the United States, 56% of its population has or has had cryptocurrencies, according to a survey by The Ascent, while figures from the Federal Reserve indicate that this percentage is similar to the holding of shares by Americans.

In crypto, traders are still trying to beat the market. Indexed products represent less than 1% of the total market capitalization of the cryptocurrency industry,” Arch explained.

According to the firm, it currently builds passive investment vehicles using Web3 principles, since its platform is permissionless, it does not provide individualized advice, and its tokens are self-custodied by investors in their own wallets.

erp