Arch (Deferred) vs Nexo
Deferred interest with independent custody against a high-rate line that re-lends collateral.
Rates as of August 1, 2026 · Verified daily
Arch (Deferred)Exclusive rate
$100k loan, 50% LTV · Max LTV 60%
Nexo$100k loan, 50% LTV · Max LTV 50%
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The bottom line
Arch (Deferred) is far cheaper (around 8.0% vs near 18.9%), uses Anchorage qualified custody, and does not rehypothecate. Nexo is an open revolving credit line, convenient to draw and repay, but it prices high and re-lends your pledged bitcoin. Choose Arch for the lower rate and untouched collateral; choose Nexo only if an always-open line outweighs the cost and rehypothecation.
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 Nexo, side by side
| Arch (Deferred) | Nexo | |
|---|---|---|
| Effective APR$100k loan, 50% LTV, all-in | 10.99% | 15.9% |
| Starting APR | 8% | 15.9% |
| Origination fee | 1.49% | None |
| Liquidation fee | 2% | None stated |
| Max LTV | 60% | 50% |
| Custody model | Qualified custodian (Anchorage Digital) | Lender-held |
| Rehypothecation | No | Yes |
| Margin-call cure window | 24 hours | Not published |
| Funding speed | Same day to 1 day | Same day |
| Minimum loan | $5,000 | $50 |
| Maximum loan | No stated maximum | $2,000,000 |
| Loan terms | 1 to 12 months; deferred interest; settle at maturity or roll accrued interest into a new loan's principal | Not published |
| Prepayment | No prepayment penalty. Accrued interest can be settled at any time without penalty. | Not published |
| Operating since | 2023 | 2018 |
| Availability | 39 states (excludes 11) | All 50 states |
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 15.9% at Nexo, a gap of roughly 4.91 points before fees. Nexo 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 Nexo uses lender-held. Nexo rehypothecates pledged Bitcoin (re-lends it); Arch (Deferred) does not, which means less exposure if the lender runs into trouble.
Loan terms and flexibility
Arch (Deferred) can run with no monthly payments, with interest deferring and capitalizing to the balance, while Nexo expects you to service interest along the way.
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 $50 at Nexo. Funding runs same day to 1 day at Arch (Deferred) and same day at Nexo.
Track record and availability
Nexo has the longer history, operating since 2018 versus 2023. On availability, Arch (Deferred) is not available in 11 states, while Nexo covers all 50 states.
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
Nexo
- Relaunched in the US in February 2026 via Bakkt after a 2022 exit
- 15.9% APR for a US borrower holding no NEXO tokens; lower rates require holding NEXO
- 50% LTV on BTC, $50 to $2M, no origination or monthly fees
- Liquidation is partial: Nexo repays part of the credit line from a portion of collateral
- Instant funding once approved
- Lower advertised rates require holding NEXO tokens (a share of your portfolio or a fixed amount), so a Bitcoin-only borrower pays 15.9%
- US availability is state-by-state and pending Nexo's legal confirmation
- 2023 SEC settlement over the now-discontinued Earn product; the US relaunch is via regulated partner Bakkt
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.
Nexo
Nexo offers instant crypto-backed credit lines, letting you borrow against Bitcoin without selling. It relaunched in the US in February 2026 through regulated partner Bakkt. A US borrower holding no NEXO tokens borrows at 15.9% APR; the lower rates Nexo advertises each require holding NEXO tokens (a share of your portfolio or a fixed amount), so a Bitcoin-only borrower does not qualify for them.
Frequently asked
Is Arch (Deferred) or Nexo cheaper?
On a $100,000 loan at 50% LTV, Arch (Deferred) is cheaper, with an all-in effective APR of about 10.99% versus 15.9%. Nexo also charges no origination fee, while Arch (Deferred) adds 1.49% up front.
Which has lower custody risk, Arch (Deferred) or Nexo?
Arch (Deferred) uses qualified custodian and Nexo uses lender-held. Check the rehypothecation row above, as re-lending of collateral adds counterparty risk.
Can I borrow more with Arch (Deferred) or Nexo?
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 August 1, 2026. How we verify rates · Full disclosures.