A full review of Arch Lending's Bitcoin-backed loan product: custody model, LTV tiers, rates, minimums, and how it compares to Ledn, Unchained, SALT, and Strike.
Arkadii Kaminskyi
Arkadii Kaminskyi
Head of Operations at Sats Terminal
Head of Operations at Sats Terminal with 5 years of experience in crypto. Specializes in DeFi, yield farming, and borrowing — has reviewed 50+ crypto products.
If you have been researching arch bitcoin lending, you have likely noticed that Arch Lending occupies a distinct corner of the CeFi landscape: a US-focused, institutionally oriented platform that survived the wreckage of 2022 and re-emerged with a clear emphasis on transparency, segregated custody, and no-rehypothecation of client collateral. This review covers everything you need to know before opening a loan with Arch — how the platform works, what its custody model actually means in practice, realistic rate and LTV expectations, how it stacks up against competitors like Ledn, Unchained, SALT, and Strike, and where an aggregator like Borrow by Sats Terminal fits into the picture. Whether you are borrowing $50,000 or $5 million against Bitcoin, the structure of your lender matters enormously — and the details are rarely as straightforward as a landing page makes them appear.
Arch Lending (arch.lending) is a centralized finance (CeFi) platform that offers Bitcoin-backed loans to individual and institutional borrowers. The core product is simple in concept: you deposit Bitcoin as collateral, Arch holds it with a qualified custodian, and you receive a US dollar-denominated loan — typically disbursed in USD via wire transfer or, in some configurations, in stablecoins. You keep your Bitcoin exposure. You get liquidity. At the end of the loan term, or when you choose to repay, you reclaim your BTC.
What sets Arch apart from the generation of lenders that collapsed in 2022 — BlockFi, Celsius, Voyager — is the explicit commitment to not rehypothecating collateral. Rehypothecation was the mechanism by which those platforms took client deposits and used them for their own lending, trading, or yield strategies, creating hidden leverage that turned fatal when markets broke. Arch's stated model is to hold your Bitcoin in segregated accounts with a qualified custodian, meaning your BTC is ring-fenced and not deployed for the platform's own purposes.
For a broader look at how bitcoin-backed lending compares across both CeFi and DeFi options, see our 2025 complete guide to Bitcoin borrowing.
Arch Lending was founded with the explicit goal of addressing the trust vacuum left by the 2022 crypto lending collapses. The founding team draws from traditional finance and asset-backed lending backgrounds, positioning the platform as closer to a specialty finance company than a crypto-native yield protocol.
The company is US-focused, targeting American borrowers who want institutional-grade custody and the regulatory clarity that comes from operating within US frameworks. This is a meaningful distinction. Many offshore CeFi lenders operate in jurisdictions with minimal oversight, which gives them flexibility but also creates counterparty risk that is difficult to assess. Arch's decision to remain US-centric adds compliance overhead but also constrains the platform to a regulatory environment that, however incomplete for crypto, has existing precedents for secured lending.
Arch's pitch is essentially this: the platform learned from the failures of its predecessors. Segregated custody, no proprietary trading with client assets, and qualified custodian relationships are the structural responses to what went wrong at Celsius and BlockFi. Whether the execution matches the pitch is what this review examines.
For context on counterparty risk in CeFi lending and why custody structures matter so much, our glossary entry covers the key concepts.
The loan process at Arch is a structured, human-assisted workflow — more like a specialty lender than a fully automated DeFi protocol. Here is how it typically unfolds:
Arch requires identity verification. This is a CeFi platform with US regulatory obligations, so Know Your Customer (KYC) and Anti-Money Laundering (AML) checks are mandatory. Expect to provide government-issued ID, proof of address, and potentially source-of-funds documentation depending on loan size. Institutional borrowers face more extensive diligence processes.
Once approved, you work with an Arch representative to structure the loan. Key variables include the loan amount, the LTV ratio you want to maintain, the loan duration, and the repayment structure. Unlike DeFi protocols that execute instantly, CeFi lenders like Arch involve a term sheet or loan agreement that both parties sign. This adds time but also adds contractual clarity that is absent in smart contract interactions.
After the loan agreement is executed, you transfer your Bitcoin to the custodian wallet address provided by Arch. This is typically a wallet held by a qualified custodian — historically, platforms like Arch have used BitGo or similar institutional-grade custodians. The key point is that the deposit address is the custodian's, not Arch's operating wallet, which is part of the segregation structure. The custodian confirms receipt before the loan proceeds.
Once collateral is confirmed and locked, Arch disburses the loan amount. For USD-denominated loans, this is typically a wire transfer to your bank account. Timelines vary but are generally measured in business days, not hours. This is one area where CeFi differs meaningfully from DeFi — on a protocol like Aave or Morpho, borrowing against wrapped Bitcoin takes minutes.
During the loan term, Arch monitors the LTV ratio. If Bitcoin's price falls significantly, the effective LTV rises — meaning your collateral is now worth less relative to the outstanding loan. At a certain threshold (often called a margin call threshold or maintenance LTV), Arch will require you to either add more collateral or partially repay the loan. If you do not respond, liquidation of some or all of your Bitcoin collateral follows.
Understanding how loan-to-value ratios work is critical for managing any Bitcoin-backed loan. Our guide on managing liquidation risk explains how to monitor and respond to LTV changes proactively.
At loan maturity, or when you choose to repay early (check your agreement for prepayment terms), you pay back the principal plus accrued interest. Once the custodian confirms full repayment, your Bitcoin is released back to an address you control.
The custody model is the most important structural feature of any CeFi Bitcoin lender. The collapses of 2022 taught the market that who holds your Bitcoin and how they hold it is not a secondary consideration — it is existential. If your lender goes insolvent while your BTC is commingled with their operating assets, you become an unsecured creditor, not a secured one. That is the situation BlockFi and Celsius clients found themselves in.
Arch's approach is built around segregated custody with a qualified custodian. Here is what that means in practice:
This is meaningfully different from what the collapsed lenders were doing. But it is worth maintaining appropriate skepticism: a platform's stated policy and its actual practice can diverge. The gold standard for verification is regular proof of reserves — cryptographic attestations that the custodian holds what the platform claims. Arch's commitment to transparency should be evaluated against whether they publish audited proof of reserves, not just stated policies.
For a deeper dive into how custodial arrangements differ and what questions to ask any lender, see our guide on custodial vs non-custodial lending.
Arch structures its loans around tiered LTV options. Borrowers can typically choose a conservative, moderate, or aggressive LTV, with each tier carrying different interest rates and margin call thresholds. Higher LTV means more liquidity relative to collateral, but also higher rates and less buffer before a margin call triggers.
The following table provides a representative overview of Arch's loan structure based on publicly available information and industry norms for comparable CeFi platforms. Specific rates are not published in real time; treat these as directional:
| LTV Tier | Typical LTV Range | Indicative APR Range | Margin Call Threshold (approx.) | Liquidation Threshold (approx.) |
|---|---|---|---|---|
| Conservative | 25–35% | 9–12% | ~50% LTV | ~65% LTV |
| Moderate | 40–50% | 11–14% | ~60% LTV | ~75% LTV |
| Aggressive | 55–65% | 13–17% | ~70% LTV | ~80% LTV |
Key loan parameters to understand:
For context on how these rates compare to DeFi alternatives, see our guide on CeFi vs DeFi crypto lending pros, cons, and best platforms.
Arch's collateral acceptance is focused. Bitcoin (BTC, native on the Bitcoin network) is the primary — and for most borrowers, the only — accepted collateral. This is by design. By limiting collateral to Bitcoin, Arch avoids the complexity and volatility risk that comes from accepting altcoins, which can lose 50–90% of their value in sharp market moves and create collateral valuation challenges.
Arch does not, as of its current positioning, accept Ethereum, stablecoins, or other crypto assets as collateral. This keeps the product focused and the risk model cleaner, but it also means that if you hold a diversified crypto portfolio, only the Bitcoin portion is eligible.
On the loan disbursement side, Arch primarily disburses in US dollars via bank wire. This suits the platform's institutional borrower base, which typically wants traditional fiat currency. Stablecoin disbursement in USDC or USDT is possible in some arrangements but is not the default product.
This is a notable contrast with DeFi protocols, where the output is always a stablecoin (USDC, USDT, DAI) on-chain. If you specifically need on-chain stablecoin liquidity — for example, to deploy into DeFi yield strategies — Arch's default USD wire model may require an additional conversion step. If you need liquidity in traditional banking rails, Arch's wire disbursement is a direct advantage.
Arch is one of several CeFi Bitcoin lenders that have positioned themselves as post-2022 survivors built on sounder foundations. Understanding how the platforms differ helps borrowers find the right fit. The table below compares key dimensions across Arch, Ledn, Unchained Capital, SALT Lending, and Strike.
| Platform | Custody Model | Min Loan Size | Rate Type | KYC Required | US Borrowers | Bitcoin Collateral Only | Disbursal Currency |
|---|---|---|---|---|---|---|---|
| Arch Lending | Segregated, qualified custodian (e.g. BitGo) | ~$50,000–75,000 | Fixed | Yes | Yes (primary focus) | Yes | USD wire, some stablecoin |
| Ledn | Proof of reserves; previously commingled concerns raised post-2022 | ~$1,000 | Fixed | Yes | Limited (non-US focus) | BTC + ETH (some products) | USD, USDC |
| Unchained Capital | Collaborative multisig; 2-of-3 keys (borrower holds 1 key) | ~$10,000 | Fixed | Yes | Yes | Yes | USD wire |
| SALT Lending | Third-party custodian; history of operational issues | ~$5,000 | Variable/Fixed | Yes | US (select states) | BTC + others | USD, stablecoins |
| Strike | Strike holds collateral; not a lending-focused product | Small (lightning-native) | Variable | Yes | Yes | BTC (Lightning) | USD |
A few observations from this comparison:
For a comprehensive comparison of how to evaluate and choose among these platforms, see our guide on how to choose the best crypto lending platform and our resource on evaluating crypto lending platforms.
Arch Lending is not a mass-market product. Its design choices — high minimums, KYC requirements, institutional custodian relationships, and US-focused regulatory compliance — point to a specific borrower profile. The platform is best suited for:
If you hold meaningful Bitcoin — say, 2 BTC or more at current prices — and need substantial liquidity without selling, Arch's minimum loan size stops being a barrier and starts being a feature. The platform is designed to serve this tier well. The institutional infrastructure, qualified custody, and relationship-based service justify the premium over DeFi for borrowers who value those attributes.
If you specifically need US dollars in a bank account — for a home purchase, tax payment, business payroll, or other traditional fiat use case — Arch's wire disbursement is a natural fit. You avoid the stablecoin-to-fiat off-ramp step that DeFi borrowers must navigate.
Corporations, family offices, and funds that hold Bitcoin on their balance sheet and need to borrow against it within a structured, legally documented facility are the clearest target market. The loan agreement, qualified custodian, and account management relationship suit institutional treasury operations better than interacting directly with DeFi protocols. For context on institutional approaches, see our guide on CeFi vs DeFi lending for institutional borrowers.
If your primary concern is the safety of your Bitcoin during the loan period — and you are willing to pay somewhat higher rates for the structural protections of segregated qualified custody — Arch is designed for you. The rate premium over DeFi is the cost of the institutional infrastructure.
Arch is not the right choice for borrowers who hold less than the minimum threshold, need speed (DeFi executes in minutes vs days for Arch), want privacy and no KYC, prefer on-chain transparency and smart contract verifiability, or are located outside the US and cannot access the platform. For those borrowers, DeFi lending protocols or other CeFi alternatives with lower minimums (Ledn, Unchained for smaller amounts) are more appropriate. Our guide on comparing DeFi vs CeFi lending walks through when each approach makes more sense.
Borrow by Sats Terminal is a Bitcoin-backed lending aggregator that aggregates loan offers across both DeFi protocols (Aave v3, Morpho Blue) and CeFi lenders, presenting users with the most competitive terms available at any given moment. It is not a lender itself — it does not issue loans or hold custody of your Bitcoin. Instead, it is the interface through which you compare and access multiple lenders simultaneously.
If you know with certainty that Arch is the right platform for your needs — because of the institutional structure, the loan size, or the USD disbursement requirement — going directly to Arch is appropriate. Where Borrow by Sats Terminal adds the most value is in situations where the best option is not predetermined:
The honest framing is this: Arch and Borrow by Sats Terminal serve overlapping but distinct needs. Arch's institutional, USD-denominated, fixed-rate, qualified-custodian product is genuinely the better choice for large-scale borrowers who need fiat and want CeFi-grade legal infrastructure. Borrow is the better choice for borrowers who want to compare rates across a wider market, operate without KYC, maintain self-custody, or borrow smaller amounts against Bitcoin holdings at potentially lower DeFi rates.
For borrowers with large enough positions that both are viable, the comparison is worth making. Borrow's rate aggregation shows you exactly what DeFi protocols are offering at that moment — allowing a genuine apples-to-apples check against any CeFi quote you have received. Understanding how aggregators find best rates is covered in our guide on how lending aggregators find best rates.
If you are evaluating your options, our resource on evaluating crypto lending platforms provides a systematic framework for making this decision based on your specific situation.
Common Questions
Yes. Arch Lending is specifically positioned as a US-focused platform, operating within US regulatory frameworks for secured lending. This makes it one of the few CeFi Bitcoin lenders that explicitly targets and accepts American borrowers. Non-US borrowers may find other CeFi platforms like Ledn more accessible, as Ledn has historically served international markets more broadly.
