.jpg)
NEW YORK, September 1, 2026 — Arch Lending Adds Tokenized Gold Collateral, the U.S.-based alternative-asset lending platform operated by ChainFi, Inc., has expanded its collateral offering to include tokenized gold assets PAX Gold (PAXG) and Tether Gold (XAUT).
The addition allows eligible borrowers to use PAXG and XAUT holdings as collateral for loans without first selling the tokens. Arch said initial loan-to-value ratios can reach up to 75%, subject to eligibility, jurisdiction, loan size and other lending requirements.
The move expands Arch Lending beyond major cryptocurrencies such as Bitcoin, Ethereum, Solana and XRP and gives holders of tokenized precious metals another potential source of liquidity.
Arch Lending Adds Tokenized Gold Collateral
Tokenized gold combines blockchain-based ownership and transferability with exposure to physical gold. Unlike cryptocurrencies whose value is primarily determined by market demand for the digital asset itself, PAXG and XAUT are designed to represent ownership interests linked to physical gold held in custody.
PAX Gold is issued by Paxos Trust Company, while Tether Gold is issued by TG Commodities Limited. Each PAXG and XAUT token is designed to represent one fine troy ounce of physical gold, although the two products use different custody, issuance and redemption structures.
By accepting the assets as collateral, Arch is seeking to serve investors who hold gold exposure on-chain but want access to liquidity without immediately disposing of those positions.
The company is particularly targeting gold investors, wealth advisors, commodities traders, family offices and corporate treasuries that maintain allocations to precious metals.
Loans Start at $250,000
Under the terms announced by Arch, loans backed by eligible assets start at $250,000 and generally have 12-month structures.
For monthly-payment loans between $250,000 and $750,000, Arch said pricing starts at 9.25% APR, consisting of an 8.50% interest rate and a 0.75% origination fee. According to the company, rates can decline to 7.25% APR for loans exceeding $5 million.
Actual pricing and availability can vary depending on factors including loan size, collateral, borrower eligibility and jurisdiction.
Arch's announced lending framework includes an initial LTV of up to 75%, an 85% margin-call threshold and a 90% liquidation threshold. Borrowers may receive funding in either U.S. dollars or USDC.
The company also says its loans have no prepayment penalties and include a 24-hour cure window following a margin call. Its liquidation system is designed to use partial liquidation when necessary rather than automatically liquidating an entire collateral position.
Anchorage Digital Provides Custody
Arch says eligible collateral is held through Anchorage Digital Bank N.A., a federally chartered digital asset bank and qualified custodian.
According to Arch, client collateral is held in segregated custody and is not rehypothecated, meaning the company does not lend the pledged assets to third parties as part of its lending model.
Arch also states that eligible assets held through Anchorage Digital benefit from $100 million in insurance coverage provided through Lloyd's of London.
The custody arrangement is an important part of Arch's pitch to institutional and high-net-worth borrowers, particularly following the counterparty and rehypothecation problems that affected parts of the centralized crypto lending industry during previous market cycles.
Arch Lending itself is not a bank. Crypto-backed loans are offered to eligible U.S. borrowers by ChainFi, Inc., which operates under the Arch Lending name and lists NMLS #2637200.
Tokenized Gold Is Becoming More Useful as On-Chain Collateral
The expansion comes as tokenized real-world assets continue to find applications beyond simply tracking the price of their underlying assets.
Gold-backed tokens can be transferred through blockchain networks and integrated into digital-asset infrastructure, allowing holders to potentially trade, transfer or use their positions as collateral.
Arch pointed to activity involving Tether Gold on decentralized lending protocol Aave as evidence of borrowing demand against tokenized gold. According to the announcement, Aave governance data showed approximately $24.99 million of outstanding debt against a $25 million isolated debt ceiling for XAUT as of January 29, 2026.
That represented near-full utilization of the available borrowing capacity at the time.
Arch's model differs from decentralized lending protocols because the company provides loans through a centralized lending structure with qualified third-party custody rather than relying exclusively on smart contracts and decentralized liquidity pools.
Gold Holders Can Access Liquidity Without Selling
One of the primary use cases for collateralized lending is allowing asset holders to obtain liquidity while maintaining their underlying investment exposure.
A PAXG or XAUT holder, for example, could pledge tokens as collateral and receive USD or USDC rather than selling the gold-backed tokens outright.
Himanshu Sahay, co-founder and CTO of Arch Lending, said the company has observed interest from advisors and family offices that already maintain gold allocations but have historically faced friction when trying to borrow against those holdings.
Tokenization can make the underlying gold exposure easier to transfer and integrate with digital financial infrastructure, while collateralized lending adds another potential use case for the asset class.
Borrowing Against Tokenized Gold Still Carries Risk
Using gold-backed tokens as collateral does not eliminate lending risk.
If the market value of pledged collateral falls enough to push a loan above its required LTV thresholds, borrowers can face margin calls and potentially liquidation. Borrowers therefore need to maintain sufficient collateral relative to the outstanding loan balance.
Tokenized gold also introduces risks beyond movements in the gold price, including issuer, custody, counterparty, technology, liquidity and regulatory risks.
Digital assets held in custody do not receive FDIC or SIPC protections simply because they are held through a regulated custodian.
Arch also states that its advertised terms are illustrative and subject to change. Loan availability varies by jurisdiction, and every loan remains subject to application requirements, verification, applicable laws and final documentation.
Arch Broadens Its Multi-Asset Collateral Strategy
With the addition of PAX Gold and Tether Gold, Arch's collateral lineup now spans both crypto-native assets and tokenized exposure to physical commodities.
The platform supports Bitcoin, Ethereum, Solana, XRP, PAX Gold and Tether Gold as eligible collateral, subject to applicable lending requirements.
The expansion reflects a broader convergence between crypto lending and tokenized real-world assets, where blockchain-based representations of traditional assets can increasingly interact with infrastructure originally developed for cryptocurrencies.
For investors holding tokenized gold, the development creates an additional borrowing option. For Arch, it broadens the company's lending business beyond crypto-native collateral and into a growing segment of the tokenized real-world asset market.
About Arch Lending
Arch Lending is a U.S.-based alternative-asset lending platform operated by ChainFi, Inc. The company provides eligible borrowers with loans secured by digital assets, including Bitcoin, Ethereum, Solana, XRP, PAX Gold and Tether Gold.
According to Arch, eligible collateral is maintained in segregated custody through Anchorage Digital and is not rehypothecated. Loan availability, rates and terms depend on jurisdiction, collateral type, loan size and borrower eligibility.
Important disclosure: Crypto-backed borrowing involves significant risks, including price volatility, margin calls, liquidation, issuer and counterparty exposure, technology risks and potential loss of principal. Loan terms and collateral eligibility can change and may not be available in every jurisdiction.
