Arch Lending Adds Pax Gold And Tether Gold As Collateral For Crypto-Backed Loans

What Happened

Arch Lending now accepts PAX Gold and Tether Gold as collateral, opening credit access to a class of investors that have largely sat outside digital-asset lending.

Arch Lending is targeting a profile that has largely sat outside crypto lending: gold investors, wealth advisors, commodities traders, family offices, and corporate treasuries with existing precious-metals allocations.

Market Context

Demand for credit against tokenized gold is documented rather than theoretical. On January 29, 2026, Aave governance data showed $24.99 million in outstanding debt against a $25 million isolated debt ceiling for Tether Gold, effectively full utilization, with the ceiling raised repeatedly in the following weeks as borrowing continued to fill available capacity.

PAXG, issued by Paxos Trust Company, represents one fine troy ounce of gold from an LBMA-accredited London Good Delivery bar held in Brink’s vaults. XAUT, issued by TG Commodities Limited, represents one fine troy ounce from a London Good Delivery bar held in Swiss custody. Together they account for the overwhelming majority of a category that generated $90.7 billion in spot trading volume in the first quarter of 2026, according to CoinGecko, surpassing the $84.64 billion recorded across the whole of 2025.

Why It Matters

As gold’s recent run higher has renewed interest in the metal as a store of value, Arch Lending, the alternative-asset lending platform operated by ChainFi, Inc, today began accepting PAX Gold (PAXG) and Tether Gold (XAUT) as loan collateral at starting loan-to-value ratios of up to 75%.

That activity took place on a decentralized, DeFi protocol, at variable rates, without fiat funding or a regulated custodian. Arch Lending is the first institutional-grade lender to offer the same underlying trade through a regulated, custodial structure: fixed 12-month terms, funding in dollars or USDC, and eligible collateral custodied by Anchorage Digital, a federally chartered bank.

Details

“We’re seeing real demand from advisors and family offices with a gold sleeve who have never borrowed against it, because the process was slow and usually ended in a sale,” said Himanshu Sahay, Co-Founder and CTO of Arch Lending. “Tokenization fixed the plumbing. Credit is the part that makes it worth doing.”

Loans start at $250,000, generally with 12-month terms. Rates for monthly-payment loans begin at 9.25% APR between $250,000 and $750,000, comprising 8.50% interest and a 0.75% origination fee, falling to 7.25% APR above $5 million. Rates and fees are subject to applicable state requirements.

$250,000 minimum loan size

Up to 75% initial LTV

85% margin-call threshold

90% liquidation threshold

Generally 12-month loan structures

USD or USDC funding

No credit score is used for loan approval. Eligibility requirements apply.

No prepayment penalties

24-hour cure window

Partial-only liquidation

Eligible collateral custodied by Anchorage Digital N.A., which maintains $100 million of insurance coverage through Lloyd’s of London

No rehypothecation

PAXG and XAUT now sit alongside Bitcoin, Ethereum, Solana, and XRP within Arch Lending’s collateral set, extending Arch Lending’s core Bitcoin-backed platform into a multi-asset credit ecosystem built around premier stores of value.

Arch Lending is a U.S.-based lending platform that lets holders of alternative assets borrow against their holdings without selling. Supporting Bitcoin, Ethereum, Solana, XRP, PAX Gold, and Tether Gold as collateral.

For more information visit: archlending.com.

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