Arch Lending launched a crypto loan refinancing program on November 12, 2026, targeting rates at least one percentage point below borrowers’ existing rates and waiving origination fees for qualifying customers. Eligible borrowers can switch without selling their pledged assets or supplying additional Bitcoin.
Key takeaways
- Arch pays the outgoing lender, removing the borrower’s upfront repayment requirement.
- Asset-specific loan minimums range from $5,000 to $250,000.
- Anchorage Digital holds pledged assets in segregated custody.
Arch’s crypto loan refinancing targets lower borrowing costs
The US-based lender’s program accepts six collateral assets: Bitcoin, Ethereum and Solana, alongside XRP and the gold-backed tokens PAX Gold and Tether Gold. Borrowers must meet the jurisdiction and collateral requirements that apply to Arch’s standard loans.
According to Himanshu Sahay, Arch’s co-founder and chief revenue officer, borrowers holding loans from offshore lenders or decentralized platforms may apply as long as they meet the stated criteria.
According to Sahay, the size of the loan is the primary factor shaping the final interest rate. Before proposing new terms, Arch reviews the borrower’s current lending arrangement. Bigger loans may unlock higher loan-to-value ratios along with higher liquidation thresholds.
The loan-to-value ratio measures debt against the market value of the collateral backing it. Raising the initial ratio allows for greater borrowing against identical assets, while a higher liquidation threshold gives that ratio more room to climb before a forced sale of collateral occurs.
If the balance remains at $100,000, shaving off one percentage point from the rate would lower yearly interest costs by $1,000, though real-world savings will vary according to the specific loan terms.
How Arch handles the lender-to-lender transfer
Arch’s refinancing desk pays the previous lender directly and coordinates the collateral transfer, so borrowers do not have to fund repayment upfront. Each borrower works with a desk representative throughout the switch, Sahay said.
The team manages coordination and provides updates until the replacement loan is established. Borrowers can then request a larger loan.
Sahay described the assets as being between accounts only during the transfer itself. Until the original lender releases them, that lender’s terms continue to govern margin calls and liquidation. Arch’s controls take over when the collateral arrives.
Loan minimums and collateral custody
Arch’s published minimum borrowing amounts depend on the pledged asset: $5,000 for Bitcoin, Ethereum or Solana; $25,000 for XRP; and $250,000 for PAX Gold (PAXG) or Tether Gold (XAUT). Jurisdiction and eligibility requirements also apply.
The lender introduced tokenized gold loans in August, accepting PAXG and XAUT with loan-to-value ratios reaching 75%.
Arch says Anchorage Digital, a federally chartered bank and qualified custodian, holds pledged assets on a 1:1 basis in segregated custody. Arch refrains from rehypothecating collateral, which means the assets are never loaned out or put to other uses.
Previous borrowers report debt consolidation and lower rates
Borrowers had already used Arch for crypto loan refinancing before the program’s launch. In August, PowerCompute disclosed that it replaced three loans by consolidating $18 million in debt into one facility backed by 307 BTC.
Company-supplied materials also describe a refinancing by Garrette Belanger, owner of Michigan-based Orange Pill Pharmacy. After transferring an existing Bitcoin-backed loan to Arch, he pays approximately two percentage points less.
Belanger uses Bitcoin-backed borrowing for inventory and expansion while keeping his holdings. Licensed to operate in both Michigan and Arizona, the pharmacy is still building out its cash-pay membership program, which it aims to roll out sometime before 2026 wraps up.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
Powered by WPeMatico
