Ledn vs Arch: Bitcoin-Backed Loans Compared in 2026

See how Ledn and Arch Lending compare on Bitcoin-backed loans, including rates, custody, Proof of Reserves, fees and track record.

Borrowing against your Bitcoin lets you raise cash while keeping your position, and Ledn and Arch are two of the lenders built to do exactly that. Each fixes your rate at the outset, neither runs a conventional credit check, and both say your collateral is not lent out to generate interest.

Their custody structures are not identical, however. Arch says it holds each borrower’s collateral in an individually segregated wallet at Anchorage Digital with zero rehypothecation. With Ledn your assets remain in custody, legally ring-fenced, and unavailable for onward lending.

What separates them most is scope and history. Arch, founded in 2022, is a US lender that accepts several digital assets as collateral and holds them with Anchorage Digital, a federally chartered digital-asset bank. Ledn has focused on Bitcoin-backed lending since 2018, lends internationally and publishes recurring Proof-of-Reserves attestations.

The sections below compare them on rates, fees, funding, liquidation, custody and transparency, so you can judge which one fits the way you want to borrow.

Check your indicative Ledn Bitcoin-backed loan terms. Rates, products and eligibility vary by jurisdiction.

Ledn prepared this comparison and has a commercial interest in its own products. Information was checked against public provider materials in September 2026 and may change. Borrowing against digital assets carries counterparty, custody, market and liquidation risk.

Key takeaways

Rates: Arch currently advertises fixed APRs of 7.25%–10.49%. Loans below $250,000 carry a 10.49% APR, while the 7.25% starting APR is available through custom quotes for loans of $10 million or more. Ledn’s current rates are 9.25%–11.49%.

Assets: Arch accepts Bitcoin, Ethereum, Solana and XRP as collateral for its standard crypto-backed loans. It also markets a separate Pre-IPO Equity Loans product. Ledn’s current loans are backed by Bitcoin only. Ledn supports holding and trading Tether Gold, but XAU₮ is not currently accepted as loan collateral.

Custody: Arch says collateral remains in individually segregated wallets at Anchorage Digital with zero rehypothecation. Its live security page states that Anchorage maintains $100 million of Lloyd’s of London insurance for specified custody risks. With Ledn, collateral is legally ring-fenced and cannot be lent out to generate interest.

Transparency: Ledn conducts Proof-of-Reserves attestations at least every six months, with its latest listed attestation completed on 31 March 2026. A recurring company-wide Proof-of-Reserves attestation from Arch could not be verified, although Arch says borrowers with loans above $100,000 receive block-explorer links showing the segregation of their collateral.

Track record: Arch was founded in 2022. Ledn has operated since 2018 and reports more than $11 billion in cumulative loan originations. Past operating performance does not guarantee future results.

Quick answer: which is more suitable for you?

Arch may be more suitable if you’re in an eligible US state, want to borrow against several assets, including ETH, SOL or XRP, and value individually segregated custody through a federally chartered digital-asset bank.

Ledn may be more suitable if you’re focused on Bitcoin, want an international lender with a longer multi-cycle track record, and place a high value on recurring, published Proof-of-Reserves attestations.

Both say your collateral is not lent out to generate interest, but the structures differ. Arch states that collateral stays at Anchorage Digital with zero rehypothecation. Ledn permits collateral to be reposted to an approved funding partner or financing vehicle, where the assets remain ring-fenced and cannot be lent onward.

Borrow from 9.25% to 11.49% APR with Ledn.

What is the difference between Ledn and Arch?

Arch Lending is a crypto-backed lender founded in 2022 and based in New York. It lets eligible US borrowers take USD or USDC loans against Bitcoin, Ethereum, Solana and XRP. It also advertises a separate lending product for eligible pre-IPO equity. Its crypto-loan rates are fixed at origination, and it uses Anchorage Digital as custodian.

Arch raised a $5 million equity seed round in 2024 led by Morgan Creek Digital and Castle Island Ventures, with participation from Galaxy Ventures and BitGo Ventures. It also secured a $70 million Galaxy-backed debt facility. In January 2026, Arch announced that $75 million of its existing loan book was being financed through Galaxy’s tokenised collateralised loan obligation, which may scale to $200 million.

Ledn is a lender founded in 2018 that issues Bitcoin-backed loans exclusively. It quotes your rate before you borrow, funds you in US dollars, supported local fiat or stablecoins, and publishes recurring Proof-of-Reserves attestations. It has no native token.

Both companies say loan collateral remains in custody and is not lent out to generate interest. The main structural differences are Arch’s broader asset range, explicit zero-rehypothecation model and US focus versus Ledn’s Bitcoin-only focus, permitted reposting structure, longer operating history and international availability.

Read more: CeFi vs DeFi Loans - Key Differences Explained

Ledn vs Arch compared, side by side

Comparison information is based on publicly available provider information checked in September 2026. Rates, fees, LTV requirements, availability and other terms can change and may vary by borrower and jurisdiction. Check each provider's current terms before borrowing.

Interest rates: the headline vs the whole picture

Arch Lending advertises fixed APRs from 7.25%, reserved for custom loans of $10 million or more. APRs are 10.49% below $250,000, 9.99% from $250,000 to $750,000, 8.99% from $750,000 to $2 million, 8.24% from $2 million to $5 million, and 7.74% from $5 million to $10 million.

The origination fee ranges from 0.25% to 1.49%, is deducted from the disbursed funds and is included in the advertised APR. Arch says the same rates apply across BTC, ETH, SOL and XRP, although maximum LTVs differ by asset.

Arch states that its rate remains fixed for the agreed term. Available durations and payment configurations vary by product and live quote. Arch advertises early repayment and rollover options; borrowers should confirm the term, payment schedule and rollover rate in their agreement.

Arch’s partial-liquidation fee should also be included in any risk-adjusted cost calculation. As always, compare total cost, not just the first line of the rate card.

Ledn currently advertises rates of 9.25%–11.49% APR. The rate is determined primarily by the loan amount, with larger loans generally qualifying for lower rates, and is displayed before you apply.

Ledn charges a 2% administrative fee at origination for borrowers outside Canada and the United States. That fee does not apply to residents of Canada or the US. Its standard term is 12 months, interest accrues daily and no payment is required until the loan is closed. Early repayment carries no penalty.

Collateral and scope: multi-asset versus Bitcoin-focused

An important difference is what each platform lends against.

Arch supports Bitcoin, Ethereum, Solana and XRP. The current maximum starting LTVs are 60% for BTC, 55% for ETH and 45% for SOL and XRP. Arch also markets a separate Pre-IPO Equity Loans product, although that is distinct from its standard crypto-backed loan.

For a borrower who holds a mix of assets, that breadth is a real convenience. Arch manages the different volatility profiles through different LTV and liquidation thresholds.

Ledn currently lends against Bitcoin only. It supports XAU₮ in its Transaction Account and trading feature, but Tether Gold is not currently available as collateral for a Ledn Dollar Loan.

That narrower focus means a simpler collateral model concentrated on Bitcoin. Neither approach is strictly better; they reflect different priorities.

If you want to borrow against ETH, SOL or XRP, Arch is built for that. If your borrowing is Bitcoin-centric and you prefer a lender concentrated on one collateral asset, Ledn is built for that.

What you receive and how loans are funded

Both platforms disburse in fiat or stablecoins and neither requires a conventional credit check, which is an advantage both share over purely on-chain DeFi lending.

Arch funds loans in USD by ACH or wire, or in USDC to a crypto wallet. After KYC is approved, documents are signed and collateral is confirmed, Arch says disbursement is typically processed within the same business day.

Arch advertises configurations that include interest deferral, early repayment and rollover options. Borrowers should confirm the available duration, payment schedule and prevailing rollover rate in their live offer.

Ledn can disburse in USD, supported local fiat or supported stablecoins, depending on the borrower’s jurisdiction. The loan remains denominated in US dollars regardless of how it is disbursed. Ledn currently reports a median funding estimate of around 18 hours after collateral is received and verified, subject to banking and business-hour delays.

Ledn’s standard term is 12 months, with interest accruing daily, no required monthly payments and no early-repayment penalty. It also provides a downloadable loan agreement detailing the terms and collateral.

If you need specific documentation for a purchase such as a property transaction, confirm exactly what each platform provides before borrowing.

Liquidation and LTV

If your collateral falls far enough in value, part or all of it can be sold to repay the loan. Both platforms provide warnings and tools, but their mechanics are different.

For a Bitcoin loan, Arch offers:

* maximum starting LTV: 60%;

* margin call: 70%;

* 24-hour cure period;

* partial liquidation: 80%;

* enough collateral sold to restore the LTV to 60%;

* loan continues after partial liquidation.

Arch typically applies a fee equal to 2% of the collateral sold, where permitted by state law.

There is an inconsistency across Arch’s live materials. Its security page currently displays a 70% warning, an 80% margin call and a 90% partial-liquidation level, while its more detailed Help Centre states a 70% margin call and an 80% partial-liquidation level for Bitcoin.

Ledn sends an alert when the loan exceeds 70% LTV and another at 75%. Its optional Auto Top-Up feature adds Bitcoin from the borrower’s Transaction Account when the LTV reaches 70%, attempting to bring it back to 68%.

Borrowers can also add collateral manually or make a partial repayment. If the LTV reaches or exceeds 80%, Ledn automatically sells enough collateral to cover the outstanding balance and accrued interest. Any remaining collateral is returned to the borrower’s Transaction Account.

Read more: How Ledn Protects Your Bitcoin: Custody, Proof of Reserves and Liquidation Protection Explained

Custody, transparency and Proof of Reserves

This is where the two philosophies diverge.

Under Arch’s custody arrangement, each borrower’s collateral is held in an individually segregated wallet at Anchorage Digital, a federally chartered digital-asset bank regulated by the US Office of the Comptroller of the Currency.

Arch states that collateral is never lent, traded, staked or rehypothecated, and is structured to remain separate from Arch’s corporate estate. Its live security page states that Anchorage maintains $100 million of Lloyd’s of London insurance covering specified risks including theft, hacking and internal fraud. That should not be interpreted as $100 million of individual cover for every borrower or as protection against market losses and liquidation.

As of the review date, a recurring company-wide Proof-of-Reserves attestation from Arch could not be located in its public materials. Arch does say that qualifying borrowers receive block-explorer links showing that collateral is held in a segregated address.

Ledn takes a different approach. It was the first digital-asset lender to complete a Proof-of-Reserves attestation and continues to conduct the procedure at least every six months. Its latest listed attestation was completed on 31 March 2026. Clients can use a unique hashed ID to verify that their account balance was included.

Ledn also publishes Open Book reporting on its loan book and collateral management.

Under Ledn’s Custodied model, collateral may be reposted to an approved institutional funding partner or a Ledn-sponsored financing vehicle. Ledn says the assets remain in verifiable custody, are legally ring-fenced from a funding partner’s other assets or held through a bankruptcy-remote structure, and cannot be lent out by Ledn or the funding party to generate interest.

Regulation and track record

Arch was founded in 2022 and offers crypto-backed loans to eligible US borrowers. It is registered through the Nationwide Multistate Licensing System and has institutional funding relationships including Galaxy.

Ledn has offered Bitcoin-backed loans since 2018 and reports more than $11 billion in cumulative loan originations. Its Cayman entity is registered as a Virtual Asset Service Provider with the Cayman Islands Monetary Authority.

The main difference is operating history. Ledn has been lending for longer, through more crypto-market cycles, and reports a substantially larger volume of cumulative originations.

Which should you choose?

Both platforms let you access your Bitcoin’s value without selling it, both quote fixed pricing and neither requires a conventional credit check. This is a close comparison, but their custody and lending structures are not identical.

Arch is an option for eligible US borrowers who want multi-asset collateral, individually segregated custody through a federally chartered digital-asset bank, competitive pricing on larger loans and flexible rollover options.

Ledn’s differentiators are its Bitcoin-only focus, operating history since 2018, more than $11 billion in company-reported originations, recurring Proof-of-Reserves attestations and broader international availability.

The key takeaway is to compare the whole loan, not just the first line of the rate card. Look at the custody structure, operating history, transparency, fees and liquidation mechanics alongside price.

See your rate and apply through Ledn’s Bitcoin-backed loan page. No conventional credit check or scheduled monthly payments. Eligibility, pricing and terms vary by jurisdiction.

Frequently asked questions

Is Arch or Ledn cheaper?

It depends on loan size and location.

Arch currently advertises fixed APRs of 7.25%–10.49%. Loans below $250,000 carry a 10.49% APR. Its origination fee is included in the APR, but a partial-liquidation fee of typically 2% of the amount sold may apply.

Ledn offers 9.25%–11.49% APR.

Do either of them lend out my Bitcoin?

Both say the collateral is not lent out to generate interest, but their structures differ.

Arch says collateral remains in an individually segregated Anchorage Digital wallet and is never lent, traded, staked or rehypothecated.

Ledn may repost collateral to an approved institutional funding partner or financing vehicle. Collateral remains in custody, is legally ring-fenced and cannot be lent onward to generate interest.

Does Arch publish Proof of Reserves?

Arch emphasises individually segregated custody through Anchorage Digital and says borrowers with loans above $100,000 receive block-explorer links showing the segregation of their collateral.

Ledn conducts Proof-of-Reserves attestations at least every six months.

Can I borrow against assets other than Bitcoin?

On Arch, yes. Its standard crypto-backed loans currently accept Bitcoin, Ethereum, Solana and XRP. Arch also advertises a separate Pre-IPO Equity Loans product.

Ledn’s current loan collateral is limited to Bitcoin. Ledn supports holding and trading Tether Gold, but does not currently offer XAU₮-backed loans.

Are both available where I live?

Arch primarily serves eligible US borrowers. Personal loans are currently unavailable to residents of California, Delaware, Hawaii, Maryland, Mississippi, Montana, Nevada, North Dakota, Rhode Island, South Carolina and Vermont.

Ledn is available internationally, but access varies. New loans are unavailable in countries including Germany, France and Italy, and restrictions apply in several US states, Canadian provinces and other jurisdictions. Some European countries limit Ledn loans to business or other non-personal purposes.

This article is for informational purposes only and is not financial, investment, tax or legal advice. Borrowing against digital assets carries risk; a significant drop in collateral value can lead to a partial liquidation or the closure of the loan.