Onramp Partners With Arch To Provide USD Loans Secured By Bitcoin
In Brief
Onramp has partnered with Arch to offer US dollar loans backed by Bitcoin collateral, providing clients with a streamlined credit solution that includes personalized support, Bitcoin storage, and secure collateral management.
Bitcoin-focused financial services company Onramp has announced a new partnership with Arch to offer US dollar loans backed by Bitcoin collateral. This collaboration aims to provide Onramp clients with a streamlined credit solution that includes personalized support, dedicated Bitcoin storage, and secure collateral management.
Among the key features of this offering, Arch provides dedicated customer service, ensuring round-the-clock assistance to address client needs efficiently. Client Bitcoin holdings are maintained in separate, verifiable addresses, enhancing security and transparency. The collateral is stored with Anchorage, a qualified custodian operating under a US-based trust structure designed to protect assets in case of bankruptcy. Arch operates as a fully compliant US entity, authorized to lend in most US states and select international markets.
Borrowers can access up to 50% Loan-to-Value (LTV) with fixed two-year terms. There are no penalties for early repayment, and clients have the option to increase their credit line in real time. Credit lines are capped at 50% LTV, with margin calls triggered at 70% LTV. If the LTV reaches 80%, a partial liquidation is conducted—only to the extent necessary to bring the LTV back down to 50%.
Currently, this product does not utilize multi-institution custody. However, both Arch and Onramp are committed to transitioning to Onramp’s multi-institution custody framework as the service evolves.
How To Get Started With Onramp’s Bitcoin-Backed Lending Service?
In order to begin using the service, new users are encouraged to sign up, while existing Onramp clients can contact their representative to initiate the process. Alternatively, they can visit the platform’s website for further details. Once registered, users must complete their initial collateral deposit, during which their Bitcoin will be transferred to a segregated address that has been independently verified by both Onramp and Arch.
After approval, the loan proceeds can be transferred directly to the user’s bank account or provided in the form of stablecoins. Users have the ability to monitor their LTV ratio in real time. If the price of Bitcoin increases, they may choose to lower their loan balance or request a partial release of their collateral.
Onramp specializes in providing high-quality financial products and services designed to facilitate Bitcoin adoption among high-net-worth individuals, family offices, and institutions. By prioritizing security through multi-institution custody and offering a streamlined approach to holding Bitcoin, Onramp’s platform minimizes counterparty risk and serves as a reliable choice for investors looking to gain Bitcoin exposure.
Disclaimer
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
