Arch Lending Launches Bitcoin Loan Refinancing With Rate Cuts

Arch Lending has launched a crypto-backed loan refinancing program designed to reduce borrowers' existing interest rates by up to two percentage points, according to CryptoNews. The platform pays previous lenders directly, allowing eligible borrowers to move collateral without upfront repayment.

Loans start at $5,000, with minimums varying by collateral asset and the borrower's jurisdiction. Arch accepts Bitcoin ($BTC), Ethereum ($SOL for Solana, ETH for Ethereum), XRP, PAX Gold, and Tether Gold as collateral. Corporate borrowers have previously utilized Arch for debt refinancing, such as when PowerCompute consolidated $18 million of debt into a facility secured by 307 BTC in August.

Refinancing Process and Savings

Arch's refinancing desk manages the handoff by paying the previous lender directly and coordinating the receipt of assets. Himanshu Sahay, Arch's co-founder and chief revenue officer, stated that the company handles the coordination so borrowers do not have to manage the transfer themselves. Arch reports that a $250,000 refinance can save over $8,000 through lower interest and waived origination fees.

Existing lenders' margin-call and liquidation rules apply until collateral is released for transfer. Pledged assets are held in 1:1 segregated custody with Anchorage Digital, a federally chartered bank and qualified custodian, and Arch does not rehypothecate collateral.

Key facts

• Arch Lending offers refinancing cuts of up to two percentage points with waived origination fees for qualifying customers.
• Minimum loans start at $5,000 for Bitcoin, Ethereum, and Solana, while XRP starts at $25,000, and tokenized gold starts at $250,000.
• Assets are held in 1:1 segregated custody with Anchorage Digital without rehypothecation.
• PowerCompute previously consolidated $18 million of debt into an Arch facility secured by 307 BTC in August.