Arch Lending targets 1-point rate cut for Bitcoin refinancing

The program accepts Bitcoin, Ethereum, Solana, XRP, PAX Gold and Tether Gold as collateral, subject to the same asset and jurisdiction requirements as Arch’s standard loans. Bitcoin, Ethereum and Solana loans start at $5,000; XRP loans at $25,000; and PAXG and XAUT loans at $250,000. Borrowers from offshore lenders or decentralized platforms may apply if they meet Arch’s requirements.

Arch co-founder and chief revenue officer Himanshu Sahay told crypto.news that borrowers work with a refinancing desk member, who coordinates the transfer and follows up if the previous lender delays releasing collateral. The company said it has completed refinancings with all major lending platforms, but did not name them or give a transfer-time estimate. Once a replacement loan is established, borrowers can request a larger loan.

The one-percentage-point reduction is a target, not a guaranteed rate. Sahay said loan size is the main factor in final terms; larger loans may qualify for higher loan-to-value ratios and liquidation thresholds. On an unchanged $100,000 balance, a one-point rate cut would save $1,000 in annual interest, though actual savings depend on the loan agreement.

Until the original lender releases the collateral, its margin-call and liquidation rules remain in force, Sahay said. Arch’s risk controls apply after the assets arrive. The company says collateral is held 1:1 in segregated custody with Anchorage Digital and is not rehypothecated. Volatility, margin calls and partial liquidation remain risks.

Arch cited Michigan-based Orange Pill Pharmacy owner Garrette Belanger as a customer who moved a Bitcoin-backed loan to the platform and now pays roughly two percentage points less. Belanger said Arch’s direct payment to his former lender was “a huge deciding factor.” In August, PowerCompute disclosed consolidating $18 million in debt, secured by 307 BTC, into one facility.