APR14%(Fixed)
Risk score49Medium
Founded in 2022 in New York, Arch (operated by ChainFi, Inc.) delivers crypto-backed loans using BTC, ETH, and SOL as collateral. It serves individuals and institutions, offering USD or stablecoin financing with concierge-level customer support from a non-bank, NMLS-registered entity.
Interest rate
Fixed (e.g. 12.5%)
Currency support
USD, USDC
Fees
1.5%
Collateral
BTC, ETH, SOL
LTV
Up to 60%
Loan type
Consumer
Liquidation LTV
80%
Margin call
70%
KYC
Yes
Total loan issued
N/A
Launch year
2023
Loan duration
1-24m
Support
Email, Chat, Call
Loan value
$1,000 - N/A
Total risk score49Medium
Collateral
0/10
What are you pledging? Native BTC is safest; wrappers, bridges, or paper IOUs add redemption risk.
Native BTC (on-chain UTXO).
Rehypothecation
2/10
Will your BTC be re-used? More hidden leverage → bigger blow-up chance.
Collateral is held in cold, bankruptcy-remote custody at Anchorage Digital under a strict "no-rehypothecation" policy; assets are pooled in omnibus wallets (individual segregated wallets only for loans > $100k).
Custody
4/10
Who can move the coins? Scores quorum design, recovery paths, and (for CeFi) bankruptcy-remote segregation.
Assets are held in segregated, bankruptcy-remote trust accounts at Anchorage. Borrowers have no key.
Security & Governance
7/10
How battle-tested are code and ops? Counts audits, bug-bounty, certs, and hardware key isolation.
Collateral sits at Anchorage, a SOC 1/SOC 2-certified, federally-chartered custodian, in cold, bankruptcy-remote trusts. Arch cites penetration testing & a bug-bounty program but discloses no independent security audit or SOC-2 for its own key-management / wallet software.
Platform
0/10
Is the chain or bridge robust? Rates consensus security and smart-contract attack surface.
Native Bitcoin script.
Oracle
10/10
How is price fetched and signed? Independence, on-chain proofs, refresh speed, circuit breakers.
Arch Lending’s public materials never disclose where their BTC-USD price comes from, how often it updates, or whether more than one exchange is consulted.
Liquidation Buffer
2/10
How much room and time before liquidation? Combines LTV gap, grace window, and flash-crash guards.
Arch sets LTV at 60%, issues margin calls at 70%, and triggers partial liquidation at 80% with a 24h grace window.
Rate & Term
2/10
Can interest spike mid-loan? Looks at fixed vs variable APR and funding duration match.
Fixed APR; no uncapped variability.
Transparency
7/10
Can outsiders verify code & solvency? Rewards open-source + live PoR; punishes black boxes.
Collateral sits with Anchorage; no public PoR or liability proof. Borrowers over $100 k can request a block‑explorer link to their segregated wallet – a one‑off, opt‑in disclosure. Smaller loans stay pooled and opaque; code is closed‑source.
Loan Currency
4/10
What asset do you borrow? Native-BTC best; fiat stables graded on reserves, audits, censorship risk.
Borrowers receive USD wires or stablecoins (USDC, USDT).
Privacy
7/10
How exposed is your identity? Scores KYC depth, data storage, and breach history.
Arch requires full KYC with government ID, handled via Persona. Personal data is encrypted and stored in the cloud.
History
4/10
Have they proven themselves? Measures years live, audit/OSS footprint, and incident track record.
Official Launch Jan 2023.
Jurisdiction
2/10
Which legal system backs you? Rates clarity of licensing, creditor rights, and enforcement.
Operated by ChainFi Inc. (NMLS #2637200); crypto-loan licences filed, product geofenced to permitted U.S. states—more regulated than most peers but not a bank or trust itself.