pledgeArch Lending Review 2026
Arch's published APR ladder runs from 7.25% on the largest loans to 10.49% on smaller ones. Here's what each tier actually means, what you'll really pay, and whether their custody setup justifies the trust.
The useful job of this page is not to push you from a lender review into a compare flow. It is to help you decide whether the real issue is line-of-credit structure, fee drag, custody design, or liquidation buffer before you narrow the field.
Arch Lending at a Glance
Institutional-grade custody, revolving line of credit, no rehypothecation
Bottom Line Up Front
Arch Lending offers one of the strongest custody setups in Bitcoin lending — Anchorage Digital (a federally chartered crypto bank) holds your collateral, with zero rehypothecation. Pricing is genuinely competitive: the published ladder runs 7.25–10.49% APR, with 7.25% on the largest ($5M+) loans and 10.49% on smaller (sub-$250K) ones — so even a typical small borrower pays around 10.49%, in line with or below most rivals. Arch says its tiered 0.49–1.49% origination fee is included in APR but deducted from proceeds. Arch's standout feature is its revolving line of credit — draw funds, repay, and draw again without reapplying.
Is Arch Lending Safe? Our Safety Score Breakdown
We rate every BTC lender on 8 factors. Here's how Arch scores on each — and why.
| Factor | Score | Why |
|---|---|---|
| Custody | 7/10 | Anchorage Digital — federally chartered OCC trust. Institutional-grade but still custodial (you don't hold keys). |
| Rehypothecation | 10/10 | No rehypothecation. Your BTC is not lent, sold, or rehypothecated. Period. |
| Regulatory | 8/10 | Registered entity. Anchorage is OCC-chartered. Available in US, CA, UK, EU. Check current state eligibility before applying. |
| Reserve Transparency | 4/10 | No published proof of reserves. We could not find a reserve attestation on Arch's own materials; a prior “Armanino LLP, Oct 2025” claim was unsourced and removed. |
| Track Record | 6/10 | Founded 2022 — 4 years old. $1B+ funded but hasn't been tested through a full crypto winter cycle. Backed by Castle Island Ventures and Galaxy Digital. |
| Liquidation | 7/10 | 24-hour grace period before liquidation with clear margin call process. Notifies borrowers at LTV thresholds. Better than most, but not as strong as Unchained (10/10). |
| Overall | 7.0 | Strong fundamentals, limited history. Anchorage custody plus explicit no-use-of-client-assets language is Arch's main safety strength; Ledn scores similarly through scale and Open Book reporting. Arch is riskier mainly due to age. |
What Does Arch Actually Charge? APR vs Reality
Arch's homepage says "from 7.25%." That number is not wrong — it is the largest-loan ($5M+) tier. Current public help docs show loan-size APR tiers and say the tiered 0.49–1.49% origination fee is included in APR.
| Loan amount tier | Published APR | Fee treatment | Borrower caveat |
|---|---|---|---|
| Under $250K | 10.49% | 1.49% included in APR | 9.00% interest + 1.49% fee; fee deducted from proceeds |
| $250K–$750K | 9.99% | Fee included in APR | Confirm quote before acting |
| $750K–$2M | 8.99% | Fee included in APR | Borrower tier can matter |
| $2M–$5M | 8.24% | Fee included in APR | Lower fee on larger tiers |
| $5M+ | from 7.25% | Fee included in APR | Best-case published tier |
Arch's public rate help article says the tiered 0.49–1.49% origination fee is included in APR. The fee can still reduce cash proceeds at disbursement, so verify the live quote and net funding amount before acting.
Reality check: Unlike some rivals whose headline rate is a hard-to-reach teaser, Arch's ladder is genuinely competitive at every size. Arch's own calculator showed 9.99% APR for a ~$335K loan (the $250K–$750K tier), and even a small sub-$250K borrower pays just 10.49% APR. The 7.25% floor is the best case — $5M+ loans — but you don't need it for Arch to price well.
$50K Loan on Arch: What You Actually Pay
Let's run the numbers. You deposit 1 BTC ($100,000) and borrow $50,000 at 60% LTV on a 12-month term.
At Ledn (11.49% on a sub-$250K loan, no origination fee) it costs $5,745 in interest — $500 more. At Unchained (12% + 2% origination + $250 vault fee) it costs $7,090 — $1,845 more. On a $50K loan, Arch is the cheapest of the three.
How Arch Handles Your Bitcoin: Anchorage Custody Explained
This is Arch's strongest feature. Your BTC is held by Anchorage Digital Bank — the only federally chartered crypto bank in the United States (OCC charter). Here's what that means in practice.
Federally Chartered
Anchorage holds an OCC national trust charter — the same regulator that oversees national banks. Subject to federal banking examinations, capital requirements, and anti-money laundering rules.
No Rehypothecation
Arch's policy is clear: your BTC is not lent, sold, or used as collateral for anything else. This matches Ledn and Unchained — one of the clearest borrower-protection approaches we track.
Bankruptcy-Remote
Arch structures collateral in bankruptcy-remote vehicles. If Arch itself fails, your BTC is segregated — creditors can't claim it. Insurance also applies.
Reserve Transparency
No published proof of reserves. We could not find a reserve attestation on Arch's own materials; a prior “Armanino LLP, Oct 2025” claim was unsourced and removed, which lowers Arch's reserve-transparency score.
The trade-off: You still don't hold the keys. Unlike Unchained's collaborative multi-sig (where you hold 2 of 3 keys), Arch's model requires trusting Anchorage. For most borrowers, a federally chartered bank is a reasonable custodian — but custody purists who want self-sovereignty should look at Unchained or Lava instead.
Arch's Line of Credit: The Most Underrated Feature
Most BTC lenders offer fixed-term loans — borrow once, repay over 6–12 months, reapply if you need more. Arch's revolving line of credit works differently: get approved once, draw funds whenever you want, repay whenever you want, draw again. No re-application needed.
| Feature | Arch | Most Lenders |
|---|---|---|
| Loan structure | Revolving LOC | Fixed-term |
| Draw funds | Anytime | Once at origination |
| Repay early | Anytime, no penalty | Varies |
| Re-borrow after repayment | Yes, instantly | New application |
| Max LTV | 60% | 50% typical |
| Collateral types | BTC, ETH, SOL | BTC only (varies) |
If you're a repeat borrower — taking loans every few months for business expenses or tax payments — the LOC structure saves time and avoids repeated origination fees. Draw $20K, repay it, draw $30K next month. One approval, ongoing access.
What Happens if BTC Drops? Arch's Liquidation Risk
At 60% LTV, Arch gives you more borrowing room than most lenders (who cap at 50%). But that extra 10% LTV means your collateral cushion is thinner. Here's exactly how much BTC needs to drop before trouble.
| Event | LTV Trigger | BTC Drop Needed | What Happens |
|---|---|---|---|
| Margin call | 70% | ~14% | 24-hour grace period to add collateral or repay |
| Partial liquidation | 80% | ~25% | Collateral sold to bring LTV back below threshold |
Risk Gauge: 60% LTV on Arch vs 50% LTV on others
Green = safe zone. Yellow = margin call territory. Red = liquidation zone. Opening at 60% LTV survives a ~25% BTC drop before partial liquidation; opening at 50% LTV survives ~37.5% — the extra 10% LTV trades roughly 12 points of drawdown tolerance for more borrowing room.
Arch vs the Competition
How does Arch stack up against the three lenders most borrowers consider?
| Feature | Arch | Ledn | Figure | Unchained |
|---|---|---|---|---|
| Safety Score | 7.0 | 7.4 | 7.1 | 9.0 |
| Lowest APR | 7.25%* | 9.25%* | 8.91%† | 12.00% |
| Origination fee | 0.49–1.49% | None | 1.0% | 2.0% |
| Max LTV | 60% | 50% | 50% | 50% |
| Loan type | Revolving LOC | Fixed-term | Fixed-term | Fixed-term |
| Custody | Anchorage (OCC) | BitGo | MPC | Multi-sig |
| Rehypothecation | None | None | Partial | None |
| Min loan | $5,000 | $500 | $500 | $150,000 |
| Founded | 2022 | 2018 | 2018 | 2016 |
* Lowest published rate applies only to the largest loan-size tier (Arch $5M+, Ledn $2M+). Most borrowers pay 1–3% more on smaller loans.
† Figure's 8.91% is the interest rate; APR including fees is 9.999%.
Who Backs Arch? Investors and Track Record
Arch was founded in 2022 and has funded over $1B in loans. Their investor list includes serious crypto-native capital:
Castle Island Ventures
Crypto-native VC led by Nic Carter. Early investors in Blockstream, Fold, and other Bitcoin infrastructure.
Galaxy Digital
Mike Novogratz's crypto financial services firm. One of the largest publicly traded crypto companies.
$1B+ Funded
Rapid growth since 2022. Smaller than Ledn ($10B funded) and Unchained (100,000+ BTC custody, $1B+ originated) but scaling fast.
The concern: 4 years is a short track record in crypto. Celsius lasted 7 years before collapse. Arch hasn't been stress-tested through a prolonged bear market with mass liquidations. The fundamentals are strong (custody, no rehypothecation, backing), but history matters — which is why track record is their lowest score (6/10).
The Verdict: Who Should Use Arch Lending
Pick Arch if...
- • You want a revolving line of credit — borrow, repay, repeat
- • Institutional-grade custody (Anchorage) matters more to you than holding keys
- • You need 60% LTV to maximize borrowing against your BTC
- • You want multi-collateral support (BTC, ETH, SOL) from one platform
- • You're a repeat borrower who doesn't want to reapply every time
Skip Arch if...
- • You want self-custody — Arch is custodial. Consider Unchained (multi-sig) or Aave (non-custodial DeFi)
- • You need less than $5,000 — Arch's minimum is higher than Ledn ($500) or Figure ($500)
- • You want the lowest published BTC rate we track — Lava's 6.5% is lower, but its custody model is unresolved (reportedly custodial as of Nov 2025)
- • You want the longest track record — Arch is 4 years old; Unchained has operated since 2016 (Xapo since 2013 is the longest we track)
On the fence?
If you're comparing Arch vs Ledn: Ledn has a slightly higher safety score (7.4/10 vs 7.0/10), same no-rehypothecation policy. Ledn has 8 years of history and $10B funded. Arch has the LOC flexibility, higher LTV, and — on a typical sub-$250K loan — a lower rate (10.49% APR vs Ledn's 11.49%). For a one-time loan, Ledn is simpler; on price, Arch now edges it. For ongoing access to credit, Arch wins.
Keep the next step in the research flow
If this review narrowed the real issue to line-of-credit structure, fee drag, custody setup, or the broader lender shortlist, move there directly instead of turning an Arch-specific due-diligence question into a generic shopping flow.