Arch Lending, an alternative-asset lending platform operated by ChainFi, Inc., now accepts PAX Gold (PAXG) and Tether Gold (XAUT) as collateral for loans with starting loan-to-value ratios of up to 75%.
The move reflects growing demand for credit against tokenized gold. On January 29, 2026, Aave governance data showed $24.99 million in outstanding debt against a $25 million isolated debt ceiling for Tether Gold, demonstrating near-full utilization of available borrowing capacity.
Regulated Alternative to Decentralized Lending
Arch Lending is positioning itself as the first institutional-grade lender offering borrowing against tokenized gold through a regulated, custodial structure. Unlike decentralized protocols that operate at variable rates, Arch Lending provides fixed 12-month terms with funding in dollars or USDC. Eligible collateral is custodied by Anchorage Digital, a federally chartered bank that maintains $100 million in insurance coverage through Lloyd's of London.
PAX Gold is issued by Paxos Trust Company and represents one fine troy ounce of gold from an LBMA-accredited London Good Delivery bar held in Brink's vaults. Tether Gold is issued by TG Commodities Limited and represents one fine troy ounce from a London Good Delivery bar held in Swiss custody.
Market Context
Tokenized gold generated $90.7 billion in spot trading volume in the first quarter of 2026, according to CoinGecko, surpassing the $84.64 billion recorded across all of 2025.
Target Market and Terms
Arch Lending is targeting gold investors, wealth advisors, commodities traders, family offices, and corporate treasuries with existing precious-metals allocations.
Loans begin at $250,000 and generally carry 12-month terms. Rates for monthly-payment loans start at 9.25% APR between $250,000 and $750,000, comprising 8.50% interest and a 0.75% origination fee, declining to 7.25% APR for loans above $5 million. The platform does not require a credit score for loan approval.
PAX Gold and Tether Gold join Bitcoin, Ethereum, Solana, and XRP within Arch Lending's collateral set.
