Tokenized gold has moved deeper into crypto lending after Aave’s XAUT-backed debt reached a $25 million ceiling and Arch Lending added loans against the two largest gold tokens.
Summary
- Aave’s $25 million XAUT debt ceiling was fully used before additional capacity filled within 24 hours.
- Arch’s Himanshu Sahay said investors increasingly want to use tokenized gold instead of passively holding it.
- Arch now accepts PAXG and XAUT as collateral for loans at up to 75% LTV.
- Borrowers retain their gold exposure but face interest, liquidation, custody, and issuer risks.
Arch co-founder and chief technology officer Himanshu Sahay told crypto.news that demand for…
