The Arch startup is aiming to become the BlackRock of Web 3 by ensuring that the transition of capital from Web2 to Web3 will be seamless even for newcomers.
Over the last weekend, decentralized finance (DeFi) startup Arch announced that it has secured $5 million in the latest funding. The recent funding round was co-led by Digital Currency Group and SoftBank spinoff Upload Ventures.
Some of the other investors participating in the funding involved TechStars, Ripio, and GBV. The DeFi startup Arch stated that it seeks to make investing in DeFi accessible to the average investor. They also added that the funding will help them achieve the goal of becoming the “BlackRock of web3”. In an interview with The Block, Christopher Storaker, co-founder and CEO of Arch said:
“We kept hearing stories of people who, for instance, wanted to get into crypto, and the only option they really had was going out to exchange and buy this single token that a friend had recommended to them that they really didn’t know anything about. They were basically putting all their eggs in one basket.”
Storaker added that diversification was important and thus they want to make it easier for crypto enthusiasts to navigate into Web 3. At Arch, they have built a decentralized asset management protocol for building well-diversified tokenized investment portfolios allowing individuals to buy via a smart contract and then self-custody the assets.
Competing with BlackRock
As we know the financial giants of the world like BlackRock have been making a move in the crypto space. They are already having crypto exchange-traded products available in the market allowing people to gain exposure to crypto in a secure and regulated environment.
However, Arch is planning to differentiate itself from these big players by undertaking a different approach. Arch will go beyond just Bitcoin and Ethereum to provide investors with exposure to what’s happening in the Web 3. Storaker said:
“When we say ‘BlackRock of web3,’ we really want to be on par on the methodology side with what they do and what people expect from passive products. It’s not something that comes naturally,” he added. “But I think people are willing to try it.”
The team stated that they would also ensure that the transition of capital from Web 2 to Web 3 will be seamless even for the newcomers. Latin America-based Ripio Ventures is currently backing Arch stating that Arch has the potential to touch millions of users in Latin America. Ripio currently has a user base of 3.5 million users mainly in Argentina and Brazil. Andres Fleischer, managing partner of Ripio Ventures said that “what Arch offers is a solution that is interesting because it’s bringing in something that is complex … [and] making it easy for everyone to do it”.
At the same time, Arch is also catering to the regulatory requirements. “We have been working with counsel almost from day one, in making sure that we don’t run afoul of regulation here in the US and elsewhere,” Storaker said. “For us, that means sometimes going slower than then you might have done otherwise, but so you don’t mess up.”
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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