Question 1

Who holds my crypto collateral?

Accepted Answer

Your collateral is held by Anchorage Digital, the only federally chartered digital asset bank in the United States, regulated by the Office of the Comptroller of the Currency (OCC). Arch does not hold or manage any private keys.

Question 2

Are my assets kept separate?

Accepted Answer

Yes. Your collateral is held under segregated custody by Anchorage Digital, our qualified custodian, and is never mixed with Arch's own funds. We offer segregated wallets for borrowers with loans over $100K, with block explorer links to verify their collateral on-chain.

Question 3

What custody technology does Anchorage use?

Accepted Answer

Anchorage employs institutional-grade cold storage with multi-party computation (MPC) key management. They hold SOC 2 Type II certification and are subject to ongoing OCC regulatory oversight.

Question 4

Does Arch rehypothecate my collateral?

Accepted Answer

Never. We maintain a strict zero-rehypothecation policy. Your crypto is not lent out, staked, traded, or used for any purpose other than securing your loan. The more collateral you deposit, the more we pay to securely store it with our regulated custodian.

Question 5

What insurance covers my collateral?

Accepted Answer

Anchorage Digital maintains $100M in insurance coverage through Lloyd's of London, protecting against theft, hacking, and internal fraud. This coverage supplements the custodial and operational safeguards already in place.

Question 6

What happens to my collateral if Arch goes out of business?

Accepted Answer

Arch's custody structure is bankruptcy-remote. Your collateral is held by Anchorage Digital, not by Arch, and is legally segregated from Arch's corporate assets. In any corporate event, your crypto remains with Anchorage and is not part of Arch's estate.

Question 7

How are collateral transfers authorized?

Accepted Answer

Only select authorized Arch team members can request transfers. Every transfer requires approval from multiple team members, verified through video authentication and further validated by Anchorage Digital. Unauthorized access is nearly impossible.

Question 8

Is two-factor authentication required?

Accepted Answer

Yes. All borrowers with active loans are required to enable 2FA using an authenticator app for time-based one-time passwords (TOTP). We recommend Google Authenticator, Authy, or 1Password. A recovery code is provided at enrollment.

Question 9

Is Arch Lending a licensed lender?

Accepted Answer

Yes. Arch Lending (ChainFi Inc) operates under NMLS

Question 10

What happens during a margin call?

Accepted Answer

For Bitcoin-backed loans, we proactively notify you at every LTV threshold. At 65% LTV you receive a warning. At 70%, a margin call is issued with a 24-hour cure window. At 80%, Arch may partially liquidate the minimum collateral needed to restore a healthy LTV. Other collateral assets have their own terms.

Question 11

Does Arch conduct security testing?

Accepted Answer

Yes. Arch conducts regular penetration testing and maintains a bug bounty program for security researchers. Our systems are continuously monitored and audited to identify and address potential vulnerabilities.

LTV Level	Status	Action Required
≤ 60%	Healthy	No action needed
65%	Warning	Notification sent; consider adding collateral
70%	Margin Call	Must add collateral or partially repay within 24 hours
80%	Partial Liquidation	Collateral may be partially liquidated to restore LTV

Crypto custody security
for Bitcoin-backed loans

Six pillars of security

Bitcoin LTV thresholds

How we protect your assets

Multi-layer access controls

Why no rehypothecation matters

Rehypothecation policy

Custody model

Collateral segregation

What happens if the lender fails?

Incentive alignment

Other Lenders

Other Lenders

Rehypothecation policy

Custody model

Collateral segregation

What happens if the lender fails?

Incentive alignment

Security researcher?

Frequently asked questions

Your crypto deserves qualified custody.