Bitcoin Loan Comparison

Arch vs. Coinbase

Arch charges 7.25%–10.49% APR with a 0.25%–1.49% origination fee using custodial (Anchorage, qualified custodian). Coinbase charges a variable 5.1%+ APR with a 1%–2% processing fee using custodial (cbBTC on Morpho / Base). See the full breakdown of rates, thresholds, and custody risk below.

Terms checked individually — Arch: 2026-09-29; Coinbase: 2026-08-28.

How do Arch and Coinbase compare for Bitcoin-backed loans?

For the standardized $250,000, 50% LTV, 12-month scenario, Arch is 9.99% APR and Coinbase is 5.1%+ variable APR. Arch: Monthly-pay option; APR includes the size-based origination fee. Because at least one price is variable or account-tier dependent, the comparison is an estimate rather than a rate winner.

Arch's published APR already includes 1.49% origination fee, and Coinbase charges a processing fee of 2% on the first $250K drawn (1% above) that is added to the loan principal and itself accrues interest.

Arch vs. Coinbase: Feature-by-Feature Comparison

Arch

Coinbase

Interest Rate (APR)

9.99%

5.1%+ variable

Pricing Basis

Loan size and payment schedule

Flat rate

Fees / Charges

1.49% origination feeArch

2% processing fee

Max Starting LTV

60%

75%Coinbase

Margin Call Threshold

70% LTVArch

None — direct liquidation

Liquidation Threshold

80% LTV

86% LTVCoinbase

Margin Call Window

24 hoursArch

No margin-call window

Custody Model

Custodial (Anchorage, qualified custodian)

Custodial (cbBTC on Morpho / Base)

Rehypothecation

Interest Payment

Monthly

Capitalized

Minimum Loan

$5,000

NoneCoinbase

Cost on a $250,000 Loan: Arch vs. Coinbase

To keep the comparison clean, both lenders are modeled at $250,000 principal, 50% starting LTV, and a 12-month term, using monthly-pay pricing where available. Arch pricing varies by loan size and payment schedule; Coinbase pricing varies by account. Actual offers can differ when those inputs change.

Loan Size	Arch APR	Coinbase APR	Arch Total Year-1 Cost	Coinbase Total Year-1 Cost	Savings
$250,000	9.99%	5.1%+ variable	$24,975	$18,341	Estimate only

Assumptions: $250,000 principal, 50% starting LTV, 12-month term, and monthly-pay pricing where offered. Total year-1 cost includes annualized interest and fees, but does not add a fee again when the lender's published APR already includes it. Arch: 1.49% origination fee — already included in APR. Coinbase: 2% processing fee. Variable or account-tier pricing remains an estimate and is not awarded a winner. Terms checked individually — Arch: 2026-09-29; Coinbase: 2026-08-28.

Custody and Collateral Security

Both Arch and Coinbase use similar custody approaches: custodial (Anchorage, qualified custodian) and custodial (cbBTC on Morpho / Base) respectively. Arch uses custodial (Anchorage, qualified custodian). Your Bitcoin depends on the security and solvency of that custody arrangement and could be at risk in the event of a hack, insolvency, or regulatory action. Coinbase uses custodial (cbBTC on Morpho / Base). Your Bitcoin depends on the security and solvency of that custody arrangement and could be at risk in the event of a hack, insolvency, or regulatory action.

Arch: High (Custodial)

•Custodial (Anchorage, qualified custodian)
•Rehypothecation: No
•Monthly interest payments
•APR and origination fee both vary by loan size; deferred-interest APR is 0.

Coinbase: High (Custodial)

•Custodial (cbBTC on Morpho / Base)
•Rehypothecation: No
•Interest capitalized (compounding)
•Low headline rate, but a processing fee — 2% on the first $250K borrowed, 1% above — is added to your principal on every draw and itself accrues interest.

Margin Call and Liquidation: Arch vs. Coinbase

Arch triggers margin calls at 70% LTV and liquidates at 80% LTV. Coinbase has no mandatory margin-call step; positions liquidate automatically at 86% LTV. Arch gives borrowers 24 hours to respond to a margin call. Coinbase has no mandatory margin-call step.

Threshold	Arch	Coinbase
Max Starting LTV	60%	75%
Margin Call	70% LTV	None — direct liquidation
Margin Call Window	24 hours	No margin-call window
Liquidation	80% LTV	86% LTV

Safety Buffer at Each Lender's Maximum Starting LTV

This comparison uses each lender's own maximum starting LTV, not a common 50% starting position. Arch: 20.0 percentage point modeled buffer between maximum starting LTV (60%) and liquidation (80% LTV). Coinbase: 11.0 percentage point modeled buffer between maximum starting LTV (75%) and liquidation (86% LTV). Arch provides a wider safety margin.

Which is better: Arch or Coinbase?

Choosing between Arch and Coinbase requires evaluating total cost, custody risk, and which platform aligns with your borrowing profile. Arch uses custodial (Anchorage, qualified custodian) with 7.25%–10.49% APR, while Coinbase uses custodial (cbBTC on Morpho / Base) with 5.1%+ (variable) APR.

The standardized table shows a first-year estimate, but at least one lender still prices by a variable rate or account tier. Treat the dollar totals as scenario estimates, not a definitive cheaper-lender ranking.

Both platforms use similar custody approaches. Arch operates via custodial (Anchorage, qualified custodian), and Coinbase uses custodial (cbBTC on Morpho / Base). Neither platform rehypothecates borrower collateral.

Arch is the better fit for borrowers who need smaller loans or instant access. Coinbase is the better fit for borrowers who need smaller loans or more flexible access.

Key details to be aware of: Arch: APR and origination fee both vary by loan size; deferred-interest APR is 0.50 percentage points higher than monthly-pay APR through $5M. Coinbase: Low headline rate, but a processing fee — 2% on the first $250K borrowed, 1% above — is added to your principal on every draw and itself accrues interest. The rate is variable, set by Morpho market utilization, and has spiked above 8% (Aug 2025).

Frequently Asked Questions

Is Arch or Coinbase cheaper for a $250,000 Bitcoin-backed loan?

The standardized $250,000, 50% LTV, 12-month estimate is $24,975 for Arch and $18,341 for Coinbase. Because at least one rate is variable or account-tier dependent, this is not a definitive cheaper-lender ranking.

How does Arch's custody model compare to Coinbase?

Arch uses custodial (Anchorage, qualified custodian). Coinbase uses custodial (cbBTC on Morpho / Base). Both platforms present similar custody risk profiles.

What is the minimum loan amount at Arch vs Coinbase?

Arch's minimum loan is $5,000. Coinbase has no published minimum. Coinbase is more accessible for smaller borrowers.

What happens if Bitcoin drops while I have a loan with Arch or Coinbase?

Arch issues a margin call at 70% LTV with a 24-hour response window and liquidates at 80% LTV. Coinbase has no formal margin-call threshold and liquidates automatically at 86% LTV. For a common 50% starting LTV (rather than each lender's maximum), the modeled buffers are 30 points at Arch and 36 points at Coinbase.

Should I use Arch or Coinbase for a Bitcoin-backed loan?

It depends on your priorities. Arch (7.25%–10.49% APR, custodial (Anchorage, qualified custodian), min $5,000) is better for borrowers who value custodial (Anchorage, qualified custodian) and need smaller loan access. Coinbase (5.1%+ (variable) APR, custodial (cbBTC on Morpho / Base), no minimum) is better for borrowers who value custodial (cbBTC on Morpho / Base) and need smaller loan access. Use the rate table and cost comparison above to model your specific scenario.

Other comparisons

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Understand the key terms

Rehypothecation Discreet Log Contracts Custodial vs. Non-Custodial LTV Ratio Margin Call Counterparty Risk

See loan scenarios

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