Arch Lending Launches Bitcoin Refinancing With Up to 2-Point Rate Cuts

Arch Lending has launched a refinancing program for crypto-backed loans that it says can cut borrowers' existing interest rates by up to two percentage points, with origination fees waived for qualifying customers. The US-based platform announced the product on Nov. 12, telling crypto.news that a $250,000 refinance can save a borrower more than $8,000 through lower interest and waived fees.

The mechanics are the selling point. When Bitcoin already secures a loan, switching lenders normally requires arranging full repayment before the original lender releases the collateral. Arch's refinancing desk pays the previous lender directly and coordinates receipt of the assets, so eligible borrowers can move collateral without selling pledged holdings or posting extra Bitcoin to complete the switch.

"The borrower doesn't have to manage the handoff. Our team takes care of the coordination and keeps them updated until the new loan is in place," said Himanshu Sahay, Arch's co-founder and chief revenue officer. If the previous lender delays the release, Arch's operations team follows up directly, Sahay said. He noted the company has completed refinancings with all major lending platforms, without naming them or committing to a transfer timeline.

What does this change for Bitcoin borrowers?

The short answer: friction. Each borrower works with a desk member through the process, and once the replacement loan is established, borrowers can request a larger loan. Sahay said loan size is the main factor determining the final rate, with larger loans qualifying for higher loan-to-value ratios and higher liquidation thresholds.

The published minimums vary by asset:

• Bitcoin, Ethereum and Solana loans start at $5,000
• XRP loans start at $25,000
• PAXG and XAUT tokenized gold loans start at $250,000

Arch accepts Bitcoin, Ethereum, Solana, XRP, PAX Gold and Tether Gold as collateral. Borrowers coming from offshore lenders or decentralized platforms can apply, provided they qualify for a standard Arch loan. In August, the platform introduced tokenized gold loans at loan-to-value ratios of up to 75%.

How is collateral handled during the switch?

Until the original lender releases the assets, its existing loan terms continue to govern margin calls and liquidation, according to Sahay. Arch's standard risk controls apply once the collateral arrives. "The only time the collateral is between accounts is during the transfer itself," he said, describing a coordinated process intended to keep that window short.

Arch holds pledged assets 1:1 in segregated custody with Anchorage Digital, a federally chartered bank and qualified custodian. The company says it does not rehypothecate collateral, meaning it does not lend out or reuse pledged assets. The announcement flags volatility, margin calls and partial liquidation as continuing risks.

Corporate borrowers have already used the platform for this kind of restructuring. In August, PowerCompute disclosed it consolidated $18 million of debt into a facility secured by 307 BTC, replacing three loans.

One retail-adjacent case came from Michigan. Garrette Belanger, owner of Orange Pill Pharmacy, moved an existing Bitcoin-backed loan to Arch and now pays roughly two percentage points less, according to company-supplied materials. Having Arch pay his previous lender directly "was a huge deciding factor for me," Belanger said. He uses Bitcoin-backed borrowing to fund inventory and expansion while keeping his holdings, with a cash-pay membership program targeted to launch before the end of 2026.

Whether the two-point offer holds as competition among crypto lenders intensifies will determine how much of the estimated $8,000 saving survives contact with final loan terms.