Arch Lending said in its Nov. 12 announcement shared with crypto.news that eligible borrowers can replace an existing loan without selling their pledged assets or providing extra Bitcoin to complete the switch. Once the replacement loan is established, borrowers can request a larger loan.
The US-based platform accepts Bitcoin, Ethereum, Solana, XRP, PAX Gold, and Tether Gold as collateral. Its refinancing program uses the same jurisdiction and collateral requirements as its standard loans.
Bitcoin refinancing removes the need to fund repayment upfront
For someone whose Bitcoin is already securing a loan, switching lenders requires arranging repayment before the original lender releases the collateral. Arch says its refinancing desk manages that handoff by paying the lender directly and coordinating receipt of the assets.
Himanshu Sahay, Arch’s co-founder and chief revenue officer, told crypto.news that each borrower works with a member of the desk throughout the process.
“The borrower doesn’t have to manage the handoff. Our team takes care of the coordination and keeps them updated until the new loan is in place,” Sahay said.
If the previous lender delays releasing the collateral, Arch’s operations team follows up directly, according to Sahay. He said the company has completed refinancings with all major lending platforms, without naming them or providing a transfer-time commitment.
Corporate borrowers have previously used Arch for Bitcoin-backed debt refinancing. In August, PowerCompute disclosed that it had consolidated $18 million of debt into a facility secured by 307 BTC, replacing three loans.
Final rates depend mainly on loan size
Sahay said loan size is the main factor determining the final interest rate. Arch reviews the existing borrowing arrangement before offering replacement terms, and larger loans can qualify for higher loan-to-value ratios and higher liquidation thresholds.
Loan-to-value measures the debt as a share of the collateral’s market value. A higher starting ratio allows more borrowing against the same assets, while a higher liquidation threshold allows that ratio to rise further before a collateral sale is triggered.
The company’s one-percentage-point rate reduction is a target for eligible refinances. On an unchanged $100,000 balance, a reduction of that size would save $1,000 in annual interest, with actual savings depending on the agreement.
Although Sahay cited a $5,000 starting minimum, Arch’s published requirements vary by asset: Bitcoin, Ethereum, and Solana loans start at $5,000, XRP at $25,000, and PAXG and XAUT at $250,000. Jurisdiction and eligibility requirements still apply.
Arch introduced tokenized gold loans in August, accepting PAXG and XAUT at loan-to-value ratios of up to 75%.
Borrowers coming from offshore lenders or decentralized platforms are welcome to apply, Sahay said, provided they qualify for a standard Arch loan.
Collateral remains subject to liquidation during the switch
Until the original lender releases the assets, its existing loan terms continue to govern margin calls and liquidation, according to Sahay. Arch’s standard risk controls apply once the collateral arrives.
“The only time the collateral is between accounts is during the transfer itself,” he said, describing a coordinated process intended to keep that window short.
Arch says pledged assets are held 1:1 in segregated custody with Anchorage Digital, a federally chartered bank and qualified custodian. The company does not rehypothecate collateral, meaning it does not lend out or reuse the pledged assets.
In an August discussion of Bitcoin loan custody, Sahay said custody safeguards do not prevent liquidation when collateral loses value. The launch announcement identifies volatility, margin calls and partial liquidation as continuing borrowing risks.
Michigan pharmacy owner reports a two-point rate reduction
Garrette Belanger, owner of Michigan-based Orange Pill Pharmacy, moved an existing Bitcoin-backed loan to Arch and now pays roughly two percentage points less, according to materials supplied by the company.
Having Arch pay his previous lender directly “was a huge deciding factor for me,” Belanger said.
He uses Bitcoin-backed borrowing to support inventory and expansion while retaining his holdings. His planned cash-pay membership program remains under development, with a launch targeted before the end of 2026. The pharmacy is currently licensed in Michigan and Arizona.
