Arch Lending Expands Collateral Options to Tokenized Gold

Arch Lending, an alternative-asset lending platform, has expanded its collateral options to include PAX Gold (PAXG) and Tether Gold (XAUT). This move allows borrowers to use these tokenized gold assets as collateral for loans, with starting loan-to-value ratios of up to 75%. The platform is targeting a new class of borrower: gold investors, wealth advisors, commodities traders, family offices, and corporate treasuries.

The demand for credit against tokenized gold is not theoretical. In January 2026, Aave governance data showed $24.99 million in outstanding debt against Tether Gold, effectively full utilization. Arch Lending offers a regulated, custodial structure: fixed 12-month terms, funding in dollars or USDC, and eligible collateral custodied by Anchorage Digital.

The platform's co-founder and CTO, Himanshu Sahay, said, 'Tokenization fixed the plumbing. Credit is the part that makes it worth doing.' Loans start at $250,000, with rates beginning at 9.25% APR between $250,000 and $750,000.