Arch Lending Adds Tokenized Gold as Collateral

Arch Lending, a crypto lending platform operated by ChainFi, has started accepting PAX Gold ($PAXG) and Tether Gold (XAUT) as collateral for crypto-backed loans. The company offers loans with an initial loan-to-value ratio of up to 75%.

Arch Lending offers a similar service through a regulated custodial structure. Loans generally have 12-month terms and can be funded in US dollars or USDC. The collateral is held by Anchorage Digital, a federally chartered bank.

$PAXG is issued by Paxos Trust Company and represents one fine troy ounce of gold stored in Brink’s vaults. XAUT is issued by TG Commodities Limited and represents one fine troy ounce of gold held in Swiss custody. Together, the tokens make up most of the tokenized gold market.

Arch Lending is now targeting gold investors, wealth advisors, commodities traders, family offices, and corporate treasuries. Loans start at $250,000, with rates from 9.25% APR for smaller loans and from 7.25% APR for loans above $5 million.

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