Arch Lending Adds PAX Gold and Tether Gold as Loan Collateral
Head of Marketing, Arch Lending
Arch Lending now accepts PAX Gold (PAXG) and Tether Gold (XAUT) as collateral for eligible loans. Holders can access USD or USDC liquidity without selling their tokenized gold.
The new collateral options sit alongside Bitcoin, Ethereum, Solana, and XRP in the Arch Lending platform. Each asset has its own minimum loan size, rate card, and loan-to-value thresholds. The PAXG-backed loan and XAUT-backed loan pages show the current terms for each token.
Two tokens backed by physical gold
PAXG and XAUT are digital representations of vaulted gold, but they are separate products with different issuers and reserve programs.
PAX Gold (PAXG) is issued by Paxos Trust Company. Each token represents one fine troy ounce of London Good Delivery gold held in LBMA-approved vaults in London. Paxos publishes monthly reserve reports and third-party attestations.
Tether Gold (XAUT) is issued by TG Commodities, S.A. de C.V. Each token represents at least one fine troy ounce of gold in an LBMA Good Delivery bar held in a Swiss vault. Tether publishes quarterly reserve reports with independent assurance reports.
Arch Lending does not issue either token. The tokens remain subject to issuer, custody, smart-contract, market-liquidity, and jurisdictional risks. Those risks matter when deciding whether tokenized gold is the right collateral for a loan.
Published loan terms
PAXG-backed and XAUT-backed loans share the same published structure:
- Minimum loan size of $250,000
- 12-month loan structures
- Starting LTV of up to 75%
- Margin-call threshold of 85% LTV
- Liquidation threshold of 90% LTV
- Funding in USD or USDC
- No credit check and no prepayment penalties
- A 24-hour cure window and partial-only liquidation
For 12-month loans with monthly interest payments, the published APR depends on loan size:
| Loan amount | Interest rate | Origination fee | APR |
|---|---|---|---|
| $250,000–$750,000 | 8.50% | 0.75% | 9.25% |
| $750,000–$2 million | 8.00% | 0.75% | 8.75% |
| $2 million–$5 million | 7.75% | 0.50% | 8.25% |
| More than $5 million | 7.00% | 0.25% | 7.25% |
Other payment schedules may be priced differently. Rates, fees, loan availability, and minimums can also vary by jurisdiction and eligibility.
What the LTV thresholds mean
LTV is the loan amount divided by the value of the collateral. At a 75% starting LTV, a $250,000 loan would require at least $333,333.33 of collateral value before fees and other eligibility requirements.
If the collateral value falls and the loan reaches 85% LTV, Arch Lending issues a margin call. The borrower has 24 hours to add collateral or repay part of the loan. If the margin call is not cured and the loan reaches the 90% liquidation threshold, Arch Lending will only sell enough collateral to restore the loan to a healthy LTV.
Your PAXG or XAUT is held in a segregated wallet with Anchorage Digital Bank, a federally chartered national trust bank regulated by the OCC. Arch Lending does not rehypothecate customer collateral. Anchorage Digital maintains $100 million in commercial crime insurance coverage through Lloyd’s of London, subject to policy terms and exclusions.
A financing option for tokenized-gold holders
Tokenized gold already gives a gold holder on-chain transferability and access to digital markets. A secured loan adds a way to use that position without selling it. The borrower keeps exposure to the token while using the loan proceeds for an eligible purpose.
That can be useful for a family office managing a gold allocation, an advisor helping a client cover a liquidity need, or an existing Arch Lending borrower who wants to use more than one type of collateral. It is still a loan against a fluctuating asset, not a guarantee against loss or a substitute for professional financial or tax advice.
To review the live terms, visit the PAXG-backed loan page, the XAUT-backed loan page, or the dedicated PAXG loan calculator and XAUT loan calculator.
This article is for informational purposes only and does not constitute financial, investment, or tax advice. Loan availability, terms, rates, fees, and eligibility are subject to change and may vary by jurisdiction. Consult qualified professionals about your circumstances.