Arch Lending Adds PAX Gold and Tether Gold as Collateral for Crypto-Backed Loans

Arch Lending, the alternative‑asset lending platform operated by ChainFi, Inc., announced that it will now accept tokenized gold – PAX Gold (PAXG) and Tether Gold (XAUT) – as eligible collateral for its crypto‑backed loan products. The move expands the platform’s collateral suite beyond Bitcoin, Ethereum, Solana and XRP and targets investors who hold physical‑gold allocations.

Why Tokenized Gold

Both PAXG and XAUT represent one fine troy ounce of gold from London Good Delivery bars held in custodial vaults. The two tokens dominate the tokenized‑gold market, which generated $90.7 billion in spot trading volume in Q1 2026, according to CoinGecko.

Loan Terms and Structure

• Minimum loan size: $250,000
• Initial loan‑to‑value (LTV) up to 75%
• Margin‑call threshold: 85%
• Liquidation threshold: 90%
• Fixed 12‑month terms, funded in USD or USDC
• Interest rates start at 8.50% plus a 0.75% origination fee (9.25% APR) for loans between $250k‑$750k; rates fall to 7.25% APR for loans above $5 million
• No credit‑score check; eligibility based on collateral and compliance requirements
• No prepayment penalties and a 24‑hour cure window for margin calls
• Collateral custodied by Anchorage Digital, insured for $100 million through Lloyd’s of London
• No rehypothecation of the pledged assets

Target Borrower Profile

The platform is aiming at gold investors, wealth advisors, commodities traders, family offices and corporate treasuries that have previously avoided crypto lending due to perceived complexity. According to Arch Lending’s co‑founder and CTO Himanshu Sahay, tokenization simplifies the process, making credit against gold more accessible.

Comparison with DeFi Lending

Tokenized‑gold borrowing already exists on decentralized platforms. For example, on January 29 2026, Aave reported $24.99 million of outstanding debt against a $25 million isolated debt ceiling for XAUT, indicating near‑full utilization. Arch Lending differentiates itself by offering a regulated, custodial structure with fixed terms and fiat funding.

Broader Asset Coverage

With the addition of PAXG and XAUT, Arch Lending’s collateral set now includes Bitcoin, Ethereum, Solana, XRP, and the two gold tokens, positioning the platform as a multi‑asset credit ecosystem focused on premier stores of value.