Arch (Deferred) vs Ledn
Two ways to carry a loan with no monthly payments, one through capitalized interest, one through a flexible structure.
Rates as of July 2026 · Verified weekly · By Borrow on Bitcoin
Arch (Deferred)Exclusive rate
$100k loan, 50% LTV · Max LTV 60%
LednExclusive rate
$100k loan, 50% LTV · Max LTV 50%
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The bottom line
Both can run without monthly payments and both avoid rehypothecation. Arch (Deferred) uses Anchorage custody and a defined deferred structure at around 8.0%. Ledn is a touch higher on rate but charges no origination fee and uses three qualified custodians, with the longer track record. Lean Arch for the lower deferred rate; lean Ledn for custody breadth, no origination fee, and history.
Conditional guidance, not a recommendation. The right pick depends on your loan size, LTV, state, and what you value most. Rates can change; the table below is the live source.
Arch (Deferred) vs Ledn, side by side
| Arch (Deferred) | Ledn | |
|---|---|---|
| Effective APR$100k loan, 50% LTV, all-in | 10.99% | 11.49% |
| Starting APR | 8% | 9.25% |
| Origination fee | 1.49% | None |
| Liquidation fee | 2% | None stated |
| Max LTV | 60% | 50% |
| Custody model | Qualified custodian (Anchorage Digital) | Qualified custodian (BitGo, Anchorage Digital, Fidelity Digital Assets) |
| Rehypothecation | No | No |
| Margin-call cure window | 24 hours | No formal window |
| Funding speed | Same day to 1 day | 1 day |
| Minimum loan | $5,000 | $1,000 |
| Maximum loan | No stated maximum | No stated maximum |
| Loan terms | 1 to 12 months; deferred interest; settle at maturity or roll accrued interest into a new loan's principal | 12 months, renewable |
| Prepayment | No prepayment penalty. Accrued interest can be settled at any time without penalty. | No prepayment penalty |
| Operating since | 2023 | 2018 |
| Availability | 39 states (excludes 11) | 44 states (excludes 6) |
Rates and fees
On a $100,000 loan at 50% LTV, Arch (Deferred) is the cheaper borrow: an all-in effective APR of about 10.99% versus 11.49% at Ledn, a gap of roughly 0.5 points before fees. Ledn charges no origination fee; Arch (Deferred) adds 1.49% up front, which matters most on shorter terms.
Custody and counterparty risk
Arch (Deferred) holds collateral via qualified custodian (Anchorage Digital), while Ledn uses qualified custodian (BitGo, Anchorage Digital, Fidelity Digital Assets). Neither rehypothecates collateral.
Loan terms and flexibility
Arch (Deferred) offers 1 to 12 months; deferred interest; settle at maturity or roll accrued interest into a new loan's principal; Ledn offers 12 months, renewable. Both can run without monthly payments, with interest capitalizing to the balance. On a margin call, Arch (Deferred) gives a 24-hour cure window and Ledn gives no formal cure window, the time you have to add collateral or repay before a forced sale. Neither penalizes early repayment.
Leverage, limits, and speed
Arch (Deferred) allows the higher maximum LTV (60% vs 50%), so you can borrow more per Bitcoin, at the cost of a thinner buffer before a margin call if the price falls. Minimums differ: $5,000 at Arch (Deferred) versus $1,000 at Ledn. Funding runs same day to 1 day at Arch (Deferred) and 1 day at Ledn.
Track record and availability
Ledn has the longer history, operating since 2018 versus 2023. On availability, Arch (Deferred) is not available in 11 states, while Ledn excludes 6.
Strengths and trade-offs
Arch (Deferred)
- No monthly payments, interest accrues to maturity
- Option to roll accrued interest into a new loan's principal at renewal
- Anchorage Digital qualified custody
- $100M Lloyd's of London insurance
- Zero rehypothecation, explicit policy
- Carries a ~50 bps APR premium over the Monthly Payment tier; the deferral has a price
- 1.49% origination fee plus 2.00% liquidation fee (origination tiers down at higher loan sizes)
- Not available in 11 states: CA, DE, HI, MS, MT, NV, ND, RI, SC, TX, VT
Ledn
- Operating since 2018, longest track record in this comparison
- $10B+ originated including institutional ($2.8B+ retail), per Ledn
- No customer losses across three market cycles, per Ledn
- No monthly payments and no prepayment penalty; interest accrues daily and is settled at maturity
- Third-party qualified custody (BitGo, Anchorage, Fidelity Digital Assets); no rehypothecation
- No formal cure window: a 70% LTV alert and an 80% liquidation, so you must act on collateral alerts (auto-top-up can manage this automatically)
- Deferred interest accrues to maturity; rolling it into a refinance capitalizes it into principal and pushes your LTV toward liquidation. Refinancing is free under current policy, which Ledn says may change.
About each lender
Arch (Deferred)
Bitcoin-backed loan with Anchorage Digital qualified custody, segregated wallets, $100M Lloyd's of London insurance, and explicit no-rehypothecation policy. The Deferred Interest variant (launched May 2026) carries no monthly payments, interest accrues to maturity or rolls into the next loan.
Ledn
Operating since 2018, the longest track record among lenders in this comparison. Collateral is held by third-party qualified custodians (BitGo, Anchorage, Fidelity Digital Assets) and is not rehypothecated. All-in APR is tiered by loan size from 11.49% down to 9.25%, with no separate US origination fee. Maximum LTV 50%. Investment-grade BBB- ABS issuance March 2026. Ledn reports $10B+ originated including institutional ($2.8B+ retail) with no customer losses across three market cycles.
Frequently asked
Is Arch (Deferred) or Ledn cheaper?
On a $100,000 loan at 50% LTV, Arch (Deferred) is cheaper, with an all-in effective APR of about 10.99% versus 11.49%. Ledn also charges no origination fee, while Arch (Deferred) adds 1.49% up front.
Which has lower custody risk, Arch (Deferred) or Ledn?
Arch (Deferred) uses qualified custodian and Ledn uses qualified custodian. Neither rehypothecates pledged collateral.
Can I borrow more with Arch (Deferred) or Ledn?
Arch (Deferred) allows the higher maximum LTV (60% versus 50%), so you can borrow more per Bitcoin pledged. The trade-off is a thinner buffer before a margin call if Bitcoin's price drops.
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borrowonbitcoin.com is a comparison publisher, not a lender or financial advisor. Rate data verified July 6, 2026. How we verify rates · Full disclosures.