Arch targets lower rates in crypto-backed loan refinancing

Arch Lending launched a crypto-backed loan refinancing program on November 12, 2026, according to company materials, targeting rates at least one percentage point below borrowers’ existing rates and waiving origination fees for qualifying customers.

Arch accepts six collateral assets: Bitcoin, Ethereum, Solana, XRP, PAX Gold and Tether Gold. The US-based lender applies the jurisdiction and collateral requirements that govern its standard loans, and eligible borrowers can switch without selling pledged assets or supplying additional Bitcoin.

Arch co-founder and chief revenue officer Himanshu Sahay said borrowers financed by offshore lenders or decentralized platforms may apply if they meet those criteria. Sahay also said “the size of the loan” is the primary factor shaping the final interest rate.

What changes for borrowers?

Arch prices each replacement after reviewing the borrower’s current lending arrangement. Larger loans may unlock higher loan-to-value ratios and higher liquidation thresholds. Loan-to-value measures debt against the market value of the collateral; a higher initial ratio permits more borrowing against the same assets, while a higher liquidation threshold leaves more room before a forced sale.

At a $100,000 loan balance, a one-percentage-point reduction lowers annual interest costs by $1,000, although actual savings vary with the specific loan terms.

For qualifying borrowers, the practical change is the repayment sequence: they do not need to fund the old loan upfront.

The lender-to-lender handoff

Sahay described the assets as being “between accounts only during the transfer itself.”

Four operational steps define the handoff:

• Arch reviews the borrower’s existing facility and proposes replacement terms.
• The refinancing desk pays the outgoing lender directly and coordinates the collateral transfer.
• The original lender’s margin-call and liquidation terms remain in force until it releases the collateral.
• Arch assumes control when the collateral arrives. The desk provides updates until the replacement loan is established, after which the borrower may request a larger loan.

Collateral eligibility and minimums

Arch’s published minimum borrowing amounts depend on the pledged asset:

• $5,000 for Bitcoin, Ethereum or Solana.
• $25,000 for XRP.
• $250,000 for PAX Gold (PAXG) or Tether Gold (XAUT).

Jurisdiction and eligibility requirements apply to each facility. Arch introduced tokenized gold loans in August, accepting PAXG and XAUT with loan-to-value ratios reaching 75%.

Custody and collateral control

Arch says Anchorage Digital, a federally chartered bank and qualified custodian, holds pledged assets on a 1:1 basis in segregated custody. Arch does not rehypothecate the collateral, which means the pledged assets are not lent out or put to other uses.

Completed refinancing examples

PowerCompute disclosed in August that it replaced three loans by consolidating $18 million in debt into one facility backed by 307 BTC. The refinancing predates the November program launch.

Company-supplied materials also describe Garrette Belanger, owner of Michigan-based Orange Pill Pharmacy, paying approximately two percentage points less after transferring an existing Bitcoin-backed loan to Arch. Belanger uses the borrowing for inventory and expansion while retaining the Bitcoin holdings.

The pharmacy is licensed to operate in Michigan and Arizona. Belanger is still building a cash-pay membership program that he aims to roll out before the end of 2026.

Going forward, the decisive checkpoint in this lender-to-lender market structure is the outgoing lender’s release of the collateral, after which Arch’s margin-call and liquidation controls take over.