How do Ledn and Arch compare for Bitcoin-backed loans?
Arch advertises a lower headline rate at 7.75%–9% compared to Ledn's 9.25%–11.49%. On a $1M loan held for 12 months, Arch saves $25,000 in total first-year cost (interest plus origination fees).
Bitcoin Loan Comparison
Ledn vs. Arch
Ledn charges 9.25%–11.49% APR with a 2% origination fee using custodial (segregated). Arch charges 7.75%–9% APR with a 1.49% origination fee using custodial (anchorage, qualified custodian). See the full breakdown of rates, thresholds, and custody risk below.
Rates verified 2026-06-09
Ledn vs. Arch: Feature-by-Feature Comparison
Ledn
Arch
Interest Rate (APR)
9.25%–11.49%
7.75%–9%Arch
Origination Fee
2%
1.49%Arch
Max Starting LTV
50%
60%Arch
Margin Call Threshold
70% LTV
70% LTV
Liquidation Threshold
80% LTV
80% LTV
Margin Call Window
Threshold-based
24 hoursArch
Custody Model
Custodial (segregated)
Custodial (Anchorage, qualified custodian)
Rehypothecation
No
No
Interest Payment
At maturity
Monthly
Minimum Loan
$500Ledn
$5,000
APR by Loan Size: Ledn vs. Arch
Ledn offers tiered rates that decrease with larger loan amounts, while Arch structures rates by loan-size. Total year-1 cost includes both annualized interest and any origination fees charged upfront.
| Loan Size | Ledn APR | Arch APR | Ledn Total Year-1 Cost | Arch Total Year-1 Cost | Savings |
|---|---|---|---|---|---|
| $100,000 | 11.49% | 9% | $13,490 | $10,490 | $3,000 with Arch |
| $250,000 | 10.99% | 8.5% | $32,475 | $24,975 | $7,500 with Arch |
| $500,000 | 10.19% | 8.5% | $60,950 | $49,950 | $11,000 with Arch |
| $1M | 9.99% | 8% | $119,900 | $94,900 | $25,000 with Arch |
| $5M | 9.25% | 7.75% | $562,500 | $462,000 | $100,500 with Arch |
Total year-1 cost includes annualized interest plus origination fees. Ledn: 2% origination fee. Arch: 1.49% origination fee. Rates sourced from each lender's public rate pages as of 2026-06-09.
Custody and Collateral Security
Both Ledn and Arch use similar custody approaches: custodial (segregated) and custodial (anchorage, qualified custodian) respectively. Ledn uses Custodial (segregated). Your Bitcoin is held by Ledn and could be at risk in the event of a hack, insolvency, or regulatory action. Arch uses Custodial (Anchorage, qualified custodian). Your Bitcoin is held by Arch and could be at risk in the event of a hack, insolvency, or regulatory action.
Ledn: High (Custodial)
- •Custodial (segregated)
- •Rehypothecation: No
- •At-maturity interest payments
- •2% admin fee waived US/Canada.
Arch: High (Custodial)
- •Custodial (Anchorage, qualified custodian)
- •Rehypothecation: No
- •Monthly interest payments
- •Origination fee is tiered and falls with loan size: 1.
Margin Call and Liquidation: Ledn vs. Arch
Ledn triggers margin calls at 70% LTV and liquidates at 80% LTV. Arch triggers margin calls at 70% LTV and liquidates at 80% LTV. Arch gives borrowers 24 hours to respond to a margin call. Ledn uses threshold-based triggers without a fixed response window.
| Threshold | Ledn | Arch |
|---|---|---|
| Max Starting LTV | 50% | 60% |
| Margin Call | 70% LTV | 70% LTV |
| Margin Call Window | Threshold-based | 24 hours |
| Liquidation | 80% LTV | 80% LTV |
Safety Buffer Comparison
Ledn: 30.0 percentage point buffer between starting LTV (50%) and liquidation (80%). Arch: 20.0 percentage point buffer between starting LTV (60%) and liquidation (80%). Ledn provides a wider safety margin.
Which is better: Ledn or Arch?
Choosing between Ledn and Arch requires evaluating total cost, custody risk, and which platform aligns with your borrowing profile. Ledn uses custodial (segregated) with 9.25%–11.49% APR, while Arch uses custodial (anchorage, qualified custodian) with 7.75%–9% APR.
On a $250,000 loan, Arch costs $24,975 in the first year versus $32,475 at Ledn, a difference of $7,500. Part of Ledn's higher cost comes from its 2% origination fee, which adds $5,000 upfront on this loan size.
Both platforms use similar custody approaches. Ledn operates via custodial (segregated), and Arch uses custodial (anchorage, qualified custodian). Neither platform rehypothecates borrower collateral.
Ledn is the better fit for borrowers who need smaller loans or instant access. Arch is the better fit for borrowers who need smaller loans or more flexible access.
Key details to be aware of: Ledn: 2% admin fee waived US/Canada. Bitcoin-only and fully custodied (no rehypothecation) since Jul 2025; monthly proof-of-reserves. Arch: Origination fee is tiered and falls with loan size: 1.49% below $750K, 0.
Frequently Asked Questions
Is Ledn or Arch cheaper for a $500,000 Bitcoin-backed loan?
Arch is cheaper. On a $500,000 loan held for 12 months, Ledn costs $60,950 (10.19% APR + 2% origination fee) while Arch costs $49,950 (8.5% APR + 1.49% origination fee). That is a $11,000 difference in the first year.
How does Ledn's custody model compare to Arch?
Ledn uses custodial (segregated). Arch uses custodial (anchorage, qualified custodian). Both platforms present similar custody risk profiles.
What is the minimum loan amount at Ledn vs Arch?
Ledn's minimum loan is $500. Arch's minimum is $5,000. Ledn is more accessible for smaller borrowers.
What happens if Bitcoin drops while I have a loan with Ledn or Arch?
Ledn issues a margin call at 70% LTV (threshold-based, no fixed window) and liquidates at 80% LTV. Arch issues a margin call at 70% LTV with a 24-hour response window and liquidates at 80% LTV. Starting from a 50% LTV, Ledn provides a 30-point buffer before liquidation, while Arch provides a 30-point buffer.
Should I use Ledn or Arch for a Bitcoin-backed loan?
It depends on your priorities. Ledn (9.25%–11.49% APR, custodial (segregated), min $500) is better for borrowers who value custodial (segregated) and need smaller loan access. Arch (7.75%–9% APR, custodial (anchorage, qualified custodian), min $5,000) is better for borrowers who value custodial (anchorage, qualified custodian) and need smaller loan access. Use the rate table and cost comparison above to model your specific scenario.
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Looking for a non-custodial alternative?
Lygos offers 10% APR, $0 origination fees, and DLC-secured collateral where rehypothecation is cryptographically impossible.