Arch Lending vs Ledn: Custody, Collateral, and LTV
Arch Lending and Ledn provide cash liquidity against digital asset collateral without requiring an outright asset sale. Arch Lending issues loans up to 60% loan-to-value starting at 7.25% APR, accepting Bitcoin, Ethereum, Solana, XRP, and tokenized gold. Collateral sits with Anchorage Digital, a federally chartered US bank, with zero rehypothecation. It serves US borrowers. The platform operates under US state lending licenses.
Ledn focuses primarily on Bitcoin collateral with initial loan-to-value ratios of 50% and interest rates starting at 9.25% APR. Founded in Canada in 2018, it serves clients across more than 100 countries under a Cayman Islands virtual asset service provider registration. It publishes monthly Open Book reports. Alongside collateral borrowing, the platform provides proof-of-reserves attestations through The Network Firm LLP, quoted-price asset trading, and Bitcoin doubling loans through its B2X product.
Quick verdict
The core differences center on collateral options, custody architecture, and geographic reach. Arch Lending grants higher borrowing power at 60% LTV with lower starting rates from 7.25% APR, keeping deposits in an insured, federally chartered US bank. Ledn accepts a narrower set of collateral for loans, but it operates internationally and provides public monthly accounting reports.
Choose Arch Lending if you reside in the United States, need loan-to-value limits up to 60%, want lower entry borrowing rates, or plan to borrow against Ethereum, Solana, XRP, or tokenized gold stored at Anchorage Digital.
Choose Ledn if you live outside the United States, borrow strictly against Bitcoin, want access to B2X leverage, or prefer a lender with monthly proof-of-reserves attestations and a global track record operating since 2018.
| Feature | ||
|---|---|---|
| Ratings | ||
| Our score | 4.0/5 | 4.1/5 |
| User rating | No reviews yet | No reviews yet |
| Rates | 4.0 | 3.5 |
| Security | 4.5 | 4.5 |
| Transparency | 4.0 | 4.5 |
| Flexibility | 4.0 | 3.5 |
| Support | 3.0 | 4.0 |
| Specs | ||
| KYC required | Yes | Yes |
| Products | Crypto-backed loans | Crypto-backed loans |
| Max loan-to-value | 60% | 50% |
| Loan APR from | 7.25% | 9.25% |
| Supported assets | Not disclosed | 5 |
| Available in | United States | Global, Canada, United States, Latin America, Europe (EEA), Asia-Pacific, Middle East, Africa |
| Proof of reserves | Not disclosed | Yes |
| Insurance | $100M Lloyd's of London policy through custodian Anchorage Digital | Not disclosed |
| Licenses & registrations | US State Lending Licenses | Cayman Islands VASP registration (CIMA) |
| Flexible (withdraw any time) | Yes | Yes |
| Fixed terms | Yes | Yes |
| Company | ||
| Founded | 2022 | 2018 |
| Headquarters | United States | Canada |
| Investors | Not disclosed | Tether |
| Strengths and weaknesses | ||
| Pros |
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| Cons |
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| Best for | US borrowers seeking crypto liquidity, Long-term Bitcoin and Ethereum holders, Borrowers needing non-rehypothecated institutional custody | Bitcoin holders borrowing cash, Long-term BTC collateral users, Borrowers needing USD liquidity |
Highlighted cells show the stronger value in each row. Data comes from each provider's site and public sources; check details before you sign up.
FAQ
Is Arch Lending cheaper than Ledn?
Arch Lending has lower starting rates, opening at 7.25% APR compared to Ledn's starting rate of 9.25% APR. Standard rates reach 10.49% APR on Arch and up to 11.49% APR on Ledn. Neither platform charges prepayment fees for early loan payoff.
Which lender offers higher borrowing limits relative to collateral?
Arch Lending provides higher borrowing power with loan-to-value limits up to 60%. Ledn caps initial standard loan-to-value ratios at 50%.
What assets can you use as collateral on each platform?
Arch Lending accepts Bitcoin, Ethereum, Solana, XRP, and tokenized gold such as PAXG and XAUT. Ledn centers its lending product on Bitcoin, while letting users hold and trade select stablecoins and XAUT on its platform.
How does custody differ between Arch Lending and Ledn?
Arch Lending places collateral in segregated accounts at Anchorage Digital, a federally chartered digital asset bank backed by a $100M insurance policy. Ledn keeps collateral in segregated on-chain addresses through an independent qualified custodian and verifies holdings via monthly attestations.
Can international borrowers use Arch Lending?
No, Arch Lending is licensed for United States borrowers. Ledn operates globally and provides loans to clients across more than 100 countries.
How does Ledn compare with Arch for Bitcoin-backed loans?
Ledn takes only Bitcoin as collateral, lends at a 50% initial LTV with liquidation at 80%, and lists its lowest rate, 9.25% APR, for loans of $2 million or more. Arch Lending advertises rates from 7.25% APR and LTVs up to 60% across Bitcoin and other assets, and it lends only to US borrowers.