Regulated Lender Brings Tokenized Gold Borrowing to Institutional Investors

Arch Lending has started accepting tokenized gold as collateral for loans, making it the first institutional-grade lender to do so in a regulated and custodial structure. The platform will allow investors to borrow against PAX Gold and Tether Gold at loan-to-value ratios of up to 75%. This move is significant because it opens credit access to a class of investors that has largely sat outside digital-asset lending.

The demand for credit against tokenized gold is not theoretical. On January 29, 2026, Aave governance data showed $24.99 million in outstanding debt against a $25 million isolated debt ceiling for Tether Gold, effectively full utilization. Arch Lending offers the same underlying trade through fixed 12-month terms and funding in dollars or USDC.

PAX Gold represents one fine troy ounce of gold from an LBMA-accredited London Good Delivery bar held in Brink's vaults, while Tether Gold represents one troy ounce from a London Good Delivery bar held in Swiss custody. Loans start at $250,000 with 12-month terms and monthly-payment rates begin at 9.25% APR between $250,000 and $750,000.