Crypto Pulse

For crypto investors who have spent years accumulating digital assets, one of the hardest financial decisions is also one of the simplest: what happens when you need cash? Selling can create a taxable event, reduce exposure to an asset you may expect to appreciate, and permanently shrink the position you worked to build. Borrowing against crypto offers another option—but it introduces a completely different set of questions. Who controls the collateral? Is it being lent to somebody else? At what point can it be liquidated? How quickly can a borrower respond to a falling market? And perhaps most importantly after the failures of several major crypto lenders: what happens to the collateral if something goes wrong with the lender itself? Those are exactly the questions that have shaped Arch Lending. Founded in February 2022 by Dhruv Patel and Himanshu Sahay, Arch entered crypto lending at almost the worst—or perhaps the most instructive—possible moment. The company was born just as the digital-asset lending industry was heading toward one of the most difficult periods in its history. Instead of retreating from that environment, Arch built its model around lessons learned from it. Today, the company offers overcollateralized loans against Bitcoin, Ethereum, Solana and XRP, along with newer lending options involving tokenized gold. Its platform emphasizes qualified custody, no rehypothecation, defined liquidation thresholds and direct human support. For borrowers comparing crypto-backed lenders, that makes Arch worth understanding. Born During Crypto Lending’s Most Difficult Period Arch was founded by crypto investors who say they were frustrated by the lack of financial services designed for people whose wealth increasingly existed outside traditional stocks, bonds and bank accounts. Patel, Arch’s co-founder and CEO, previously worked at Brex building financial products for businesses. Co-founder Himanshu Sahay brought an engineering and technology background that included Snapchat, Tinder and Bird. Arch says the founders’ goal was to combine financial infrastructure with the type of user experience consumers had come to expect from modern technology companies. The timing was significant. Arch was founded in February 2022. Over the months that followed, the crypto industry experienced the collapses of Terra, Celsius, Voyager, BlockFi, FTX and other companies or projects that damaged confidence in centralized crypto finance. One of the biggest lessons from that period was that borrowers needed to understand more than an advertised interest rate. They needed to know what happened to their collateral after they deposited it. Arch increasingly made that question central to its lending model. The company initially raised $2.75 million while developing its alternative-asset lending platform. By August 2024, Arch announced another $75 million consisting of an oversubscribed $5 million equity round and a $70 million loan-financing facility supplied by Galaxy. Investors in the company have included Morgan Creek Digital, Castle Island Ventures, Galaxy Ventures and BitGo Ventures. That funding gave Arch additional lending capacity, but its most important differentiator for borrowers may be what it says it doesn’t do with collateral. No Rehypothecation Rehypothecation sounds technical, but every crypto borrower should understand it before taking out a loan. When collateral is rehypothecated, a lender may take assets pledged by its customers and lend, invest or otherwise deploy those assets elsewhere. That can create another layer of counterparty risk. Arch says it follows a strict zero-rehypothecation policy. According to Arch, collateral is not lent out, traded, staked or otherwise deployed to generate additional revenue. Instead, pledged assets remain in custody supporting the borrower’s loan. That distinction matters. A borrower should never assume that depositing Bitcoin with two different lenders creates the same risk simply because both loans have the same LTV or interest rate. CryptoLoanAdvisor believes custody structure and rehypothecation policy should be examined alongside APR when comparing lenders. Anchorage Digital Holds the Collateral Arch currently uses Anchorage Digital Bank as its qualified custodian. Anchorage Digital is a federally chartered digital-asset bank regulated by the Office of the Comptroller of the Currency. Arch says collateral is maintained under segregated custody and structured to be bankruptcy-remote from Arch’s corporate assets. Arch also states that Anchorage maintains $100 million in Lloyd’s of London insurance coverage covering specified risks, subject to the policy’s terms and exclusions. For loans above $100,000, Arch says segregated wallets can be made available, along with blockchain explorer links allowing borrowers to verify the location of their collateral on-chain. Arch itself does not hold the private keys. That structure addresses one of the most important questions CLA believes every borrower should ask: Who actually controls my crypto while the loan is outstanding? BTC, ETH, SOL and XRP Arch’s standard crypto-backed lending platform currently supports four major digital assets: Bitcoin (BTC)Ethereum (ETH)Solana (SOL)XRP The company’s latest published loan terms show that these assets do not receive identical LTV treatment. Bitcoin currently has the highest standard starting LTV: BTC: 60% starting LTV, 70% margin call and 80% partial-liquidation level. Ethereum is slightly more conservative: ETH: 55% starting LTV, 65% margin call and 75% partial liquidation. Solana and XRP carry lower starting thresholds: SOL: 45% starting LTV, 55% margin call and 65% partial liquidation. XRP: 45% starting LTV, 55% margin call and 65% partial liquidation. That difference is important. A borrower pledging $100,000 worth of Bitcoin should not assume the same borrowing capacity applies to $100,000 of XRP or Solana. The asset being pledged directly affects the safety buffer between the initial loan and a margin call. Arch Uses Partial Liquidation One of the more borrower-friendly features of Arch’s structure is its approach to liquidation. If collateral values fall far enough, liquidation remains a real risk. A crypto-backed loan does not eliminate volatility simply because the borrower didn’t sell the crypto when taking out the loan. Arch uses warning levels, margin-call levels and partial-liquidation thresholds. Using Bitcoin as an example, the company currently considers an LTV of 60% or below healthy. At 65%, the borrower receives a warning. At 70%, a margin call is triggered and the borrower generally has 24 hours to add collateral or repay part of the loan. At 80%, Arch may partially liquidate

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With more than 250 digital assets, institutional-grade cold storage, and personalized broker support, Caleb & Brown is bringing a different experience to the cryptocurrency market. By Roger Powers | Crypto Loan Advisor | Crypto Pulse The cryptocurrency industry has spent much of its history emphasizing technology, automation, and the elimination of traditional financial intermediaries. But as digital-asset portfolios grow, investors are discovering that technology alone does not answer every question. How do you execute a substantial Bitcoin transaction without unnecessarily disrupting the market? What happens when you want to convert cryptocurrency into dollars and transfer the proceeds to your bank? Who can you call when you need assistance with a complex transaction? And perhaps one of the most overlooked questions: What happens to your cryptocurrency when you die? These are the types of challenges Caleb & Brown has built its business around. Founded in 2016, the cryptocurrency brokerage reports serving more than 60,000 clients, with offices in Australia and the United States. Its core proposition is personalized premium service, combining digital-asset trading with access to a personal broker. For investors accustomed to navigating cryptocurrency exchanges alone, that represents a different approach to managing digital wealth. A Personal Broker in a Digital World One of the distinguishing features of Caleb & Brown is its emphasis on human relationships. Rather than relying exclusively on automated systems and online support tickets, clients can contact their personal broker by telephone or email. According to the company, brokers assist with portfolio construction, cryptocurrency education, trading strategies, and transaction execution. The company describes its offering as a 24/7 personalized brokerage service, with clients able to contact their broker as often as needed without an additional charge for broker access. For someone purchasing their first Bitcoin, that relationship may help them understand the transaction process. For a long-term investor holding a substantial digital-asset portfolio, the conversation may involve liquidity, diversification, or executing a complex trade. The value proposition is straightforward: cryptocurrency investors can access technology without giving up the ability to speak with another human being. More Than 250 Digital Assets and Direct Crypto Swaps Cryptocurrency portfolios have evolved considerably beyond Bitcoin and Ethereum. Investors increasingly hold combinations of Bitcoin, XRP, Ethereum, Solana, and other digital assets, creating a need for trading services that can accommodate more complex portfolios. Caleb & Brown reports supporting more than 250 digital assets, allowing clients to buy, sell, and swap cryptocurrencies. The company also facilitates direct cryptocurrency-to-cryptocurrency swaps. For example, an investor seeking to exchange XRP for Solana can execute a direct swap rather than manually selling XRP, transferring the proceeds, and purchasing SOL in separate transactions. This can simplify portfolio adjustments, particularly for investors managing multiple digital assets. Importantly, cryptocurrency swaps may create taxable events depending on the investor’s jurisdiction and circumstances. Turning Cryptocurrency Into Spendable Dollars At Crypto Loan Advisor, we frequently discuss an important distinction between wealth and liquidity. A person may hold a substantial cryptocurrency portfolio while still needing dollars for real estate, business investments, retirement, or everyday expenses. There are generally two different paths to obtaining that liquidity: selling digital assets or borrowing against them. Caleb & Brown specializes in cryptocurrency brokerage services, including helping clients sell digital assets and withdraw the resulting fiat currency. According to the company’s supplied service information, it facilitates the conversion of cryptocurrency into fiat and the transfer of proceeds to a client’s nominated bank account, advertising zero withdrawal fees and no withdrawal limits. That distinction deserves attention. A cryptocurrency transaction is not necessarily complete when the asset has been sold. Investors also need a reliable process for transferring the proceeds into the traditional banking system. Trading costs and any applicable spreads should still be reviewed separately from withdrawal fees. For investors evaluating whether to borrow against their crypto or sell a portion of their holdings, understanding the mechanics and costs of both options is essential. Professional Trade Execution Matters Anyone who has executed a substantial cryptocurrency transaction understands that the displayed market price and the final execution price are not necessarily identical. Market liquidity, volatility, order size, and slippage can influence the amount an investor ultimately receives. Caleb & Brown reports using a team of experienced traders, multiple liquidity partners, and different trading techniques to seek competitive market execution. One technique identified by the company is Time-Weighted Average Price, or TWAP. TWAP involves spreading a transaction across a period of time rather than executing the entire order immediately. Depending on market conditions, this approach may help reduce the market impact of a larger transaction. It does not guarantee a better price, but it illustrates why execution strategy can become increasingly relevant as cryptocurrency portfolios grow. Institutional-Grade Cold Storage For long-term cryptocurrency holders, asset security is another essential consideration. Caleb & Brown offers an institutional-grade cold-storage custodial solution designed to protect client cryptocurrency assets. Cold storage generally refers to keeping cryptocurrency private keys in systems that are not continuously connected to the internet. This can reduce exposure to certain online security threats, although no custody arrangement eliminates every potential risk. Investors considering custodial services should understand who controls the private keys, how withdrawals are authorized, what protections exist, and what happens if the service provider experiences financial or operational difficulties. At Crypto Loan Advisor, we encourage investors to examine custody arrangements carefully, particularly when digital assets may eventually be used as collateral for a cryptocurrency-backed loan. What Happens to Your Crypto When You Die? One of the most interesting aspects of Caleb & Brown’s offering concerns digital-asset inheritance. Traditional financial accounts generally have established procedures for transferring assets following the death of an account holder. Cryptocurrency can introduce additional complications. Private keys, wallet access, account ownership, legal documentation, and beneficiary instructions can all become significant issues for surviving family members. Caleb & Brown states that its brokers and legal team work with executors and relevant authorities to facilitate the transfer of a deceased client’s digital assets to their rightful beneficiaries. This is an important conversation for long-term cryptocurrency holders. Building

Can crypto loans fund homes without forcing a sale? Learn how collateral, LTV, liquidation risk, taxes, and mortgage rules shape decision for U.S. buyers.