Arch Lending vs Xapo Bank: US Loans vs Private Banking
Arch Lending is an American credit platform that issues fiat USD and USDC loans against cryptocurrency collateral. It operates under US state lending licenses and holds borrower collateral at Anchorage Digital without rehypothecation. Xapo Bank is a Gibraltar-licensed private bank founded in 2013 that combines traditional banking rails with Bitcoin custody, cash deposits earning daily yield paid in Bitcoin, and collateralized borrowing.
Arch Lending serves borrowers in the United States, whereas Xapo Bank is listed as available in the United Kingdom and global markets. Arch Lending accepts multiple digital assets including Bitcoin, Solana, and tokenized gold at loan-to-value ratios up to 60% with interest rates starting from 7.25% APR. Xapo Bank restricts its lending collateral to Bitcoin alone, caps borrowing at a 40% loan-to-value ratio, and charges an annual membership fee of $1,000.
Quick verdict
Arch Lending serves borrowers seeking a dedicated US credit line across several crypto assets, while Xapo Bank functions as a private bank pairing fiat savings with Bitcoin custody.
Choose Arch Lending if you reside in the United States and want to access liquidity against Bitcoin, Solana, Ethereum, XRP, or tokenized gold. It delivers leverage up to 60% LTV, zero rehypothecation through a federally chartered custodian, and flexible repayment terms without early settlement fees.
Choose Xapo Bank if you are an international or UK saver seeking an integrated private bank. Its accounts provide USD balances protected up to £120,000 under the Gibraltar Deposit Guarantee Scheme, daily interest payouts in Bitcoin, and long-term Bitcoin custody alongside traditional fiat rails.
| Feature | ||
|---|---|---|
| Ratings | ||
| Our score | 4.0/5 | 4.3/5 |
| User rating | No reviews yet | No reviews yet |
| Rates | 4.0 | 4.0 |
| Security | 4.5 | 4.5 |
| Transparency | 4.0 | 4.5 |
| Flexibility | 4.0 | 4.0 |
| Support | 3.0 | 4.5 |
| Specs | ||
| KYC required | Yes | Yes |
| Products | Crypto-backed loans | Savings / earn, Crypto-backed loans |
| Highest advertised APY | Not disclosed | 4.6% |
| Max loan-to-value | 60% | 40% |
| Loan APR from | 7.25% | Not disclosed |
| Available in | United States | United Kingdom, Global |
| Insurance | $100M Lloyd's of London policy through custodian Anchorage Digital | Gibraltar Deposit Guarantee Scheme covers USD deposits up to £120,000 equivalent; Lloyd's of London covers BTC custody |
| Licenses & registrations | US State Lending Licenses | Gibraltar banking licence (GFSC) |
| Flexible (withdraw any time) | Yes | Yes |
| Fixed terms | Yes | Not disclosed |
| Auto-compounding | Not disclosed | Yes |
| Company | ||
| Founded | 2022 | 2013 |
| Headquarters | United States | Gibraltar |
| Investors | Not disclosed | Not disclosed |
| 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 | High-net-worth Bitcoin holders, Savers accumulating Bitcoin yield from cash, Borrowers seeking non-taxable 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
Can US residents use Xapo Bank?
Arch Lending is available in the United States, while Xapo Bank is listed as available in the United Kingdom and global markets.
Which platform offers higher loan-to-value ratios?
Arch Lending provides higher borrowing power with loan-to-value ratios up to 60%. Xapo Bank restricts its Bitcoin-backed loans to a maximum 40% loan-to-value ratio.
What collateral assets does each provider support?
Arch Lending accepts Bitcoin, Ethereum, Solana, XRP, and tokenized gold such as PAXG and XAUT. Xapo Bank permits only Bitcoin as loan collateral.
Does Arch Lending charge an annual account fee?
Arch Lending's listed terms include no prepayment penalties, whereas Xapo Bank assesses a mandatory $1,000 annual membership fee.