Arch Lending Expands Collateral Options to Include Gold-Backed Assets

Arch Lending has expanded its collateral options for crypto-backed loans to include two gold-backed assets, PAX Gold (PAXG) and Tether Gold (XAUT). The platform, operated by ChainFi, Inc, now allows borrowers to use these tokens as collateral at a starting loan-to-value ratio of up to 75%. This move is significant given the surge in interest in gold as a store of value, with PAXG and XAUT generating $90.7 billion in spot trading volume in the first quarter of 2026.

According to Aave governance data, there was already strong demand for credit against tokenized gold, with $24.99 million in outstanding debt against Tether Gold by January 29, 2026. Arch Lending's regulated and custodial structure provides a more secure option for borrowers, offering fixed 12-month terms and funding in dollars or USDC.

The platform is targeting gold investors, wealth advisors, commodities traders, family offices, and corporate treasuries with existing precious-metals allocations, providing them with an opportunity to access credit without selling their assets. As Himanshu Sahay, Co-Founder and CTO of Arch Lending, noted, 'tokenization fixed the plumbing' and now credit is making it worth doing.