Arch Lending now accepts PAX Gold and Tether Gold as collateral with up to 75% loan-to-value ratios.
DeFi & Yields ·
Arch Lending has added PAX Gold and Tether Gold as accepted collateral for loans, with borrowers able to access up to 75% loan-to-value ratios on these tokenized gold assets. This expansion broadens the range of collateral types the platform supports beyond traditional crypto holdings.
The move reflects growing integration of tokenized commodities into crypto lending infrastructure. Gold-backed tokens provide borrowers with an alternative collateral option that ties digital lending to physical precious-metal reserves, while maintaining the speed and automation of onchain credit markets.
The specific mechanics of Arch Lending's liquidation thresholds and interest-rate terms for these assets remain undisclosed. It is also unclear whether this collateral acceptance applies across all of Arch Lending's loan products or represents a phased rollout.