Arch Lending Opens Crypto-Backed Loans to Gold Token Holders

Arch Lending has started accepting PAX Gold (PAXG) and Tether Gold (XAUT) as collateral, granting credit access to investors who had remained largely outside digital-asset lending.

Gold’s recent price rally has revived interest in the metal as a store of value. Against that backdrop, Arch Lending — an alternative-asset lending platform run by ChainFi, Inc — now accepts PAX Gold (PAXG) and Tether Gold (XAUT) as collateral for loans, with initial loan-to-value ratios reaching 75%.

Gold token borrowing is already occurring.

On January 29, 2026, Aave governance data revealed $24.99 million in outstanding loans against a $25 million isolated debt ceiling for Tether Gold, representing nearly full capacity. In the following weeks, the ceiling was raised multiple times as borrowers kept taking out loans.

That activity happened on a decentralized DeFi protocol with variable rates and no fiat funding or regulated custodian. Arch Lending is the first institutional lender to provide the same trade via a regulated, custodial framework: fixed 12-month terms, funding in dollars or USDC, and collateral held at Anchorage Digital, a federally chartered bank.

PAXG is issued by Paxos Trust Company and each token represents one fine troy ounce of gold from an LBMA-accredited London Good Delivery bar stored in Brink’s vaults. XAUT comes from TG Commodities Limited and also represents one fine troy ounce from a London Good Delivery bar held in Swiss custody. Combined, these two tokens dominate a category that saw $90.7 billion in spot trading volume in the first quarter of 2026, according to CoinGecko, exceeding the $84.64 billion recorded for all of 2025.

New category of borrowers.

Arch Lending focuses on borrowers who have been largely absent from crypto lending: gold investors, wealth advisors, commodities traders, family offices, and corporate treasuries with precious-metals portfolios.

“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.”

Loan Terms

Loans have a minimum of $250,000 and typically last 12 months. Monthly-payment loans have rates starting at 9.25% APR for amounts between $250,000 and $750,000, made up of 8.50% interest and a 0.75% origination fee. For loans above $5 million, the rate drops to 7.25% APR. All rates and fees depend on state requirements.

• Minimum loan size: $250,000
• Initial LTV up to 75%li>
• Margin-call threshold at 85%li>
• Liquidation threshold at 90%li>
• Usually 12-month term
• Funded in USD or USDC
• No credit score used; eligibility applies
<>li>No prepayment penalties
• 24-hour cure period
<>>li>Partial-only liquidation</>li>
• Collateral custodied by Anchorage Digital N.A., with $100 million insurance via Lloyd’s of London</>li><>li>No rehypothecation

PAXG and XAUT are now part of Arch Lending’s collateral set, joining Bitcoin, Etherum, Solana, and XRP. This expansion turns Arch Lending’s Bitcoin-focused platform into a multi-asset credit ecosystem centered on prime stores of value.

About Arch Lending

Arch Lending is a U.S. platform that enables holders of alternative assets to borrow without selling. It accepts Bitcoin, Etherum, Solana, XRP, PAX Gold, and Tether Gold as collateral.