When you take a Bitcoin-backed loan through Rhino, one of the most important questions is: where does my Bitcoin go? Here's exactly how your collateral is held and protected.
🏛️ Your Bitcoin Goes to Anchorage Digital
When you open a loan, your Bitcoin collateral is transferred to Anchorage Digital — the custody partner Arch uses to safeguard all client funds.
Anchorage Digital Bank is the first federally chartered crypto bank in the United States, holding an OCC (Office of the Comptroller of the Currency) banking charter. Your Bitcoin is held in cold storage using institutional-grade security — the same standard used by major financial institutions.
🚫 No Rehypothecation — Ever
Arch has a strict no-rehypothecation policy. In plain English, this means:
Your Bitcoin is never lent out to other parties
Arch does not use your collateral to earn yield for themselves
The same Bitcoin you deposit is the Bitcoin returned to you
This is what separates Arch from failed lenders like Celsius, which secretly used customer deposits for their own purposes. With Arch and Anchorage, your Bitcoin simply sits in secure custody until you repay your loan.
🛡️ $250 Million Insurance
All client funds held at Anchorage Digital are covered by $250 million in insurance against theft or loss — on top of Anchorage's institutional security infrastructure.
🔐 Segregated, Bankruptcy-Remote Accounts
Your Bitcoin is held in segregated accounts that are legally separate from Arch's own assets.
This means:
Your Bitcoin cannot be touched by Arch's creditors
In the unlikely event of Arch having financial difficulties, your collateral is protected
Your assets remain legally yours throughout the life of the loan
↩️ Getting Your Bitcoin Back
Once you repay your loan in full, Arch initiates the return of your Bitcoin from Anchorage Digital. The return process is typically same-day or next-day after repayment is confirmed.
Need help? Reach out to us anytime via the in-app chat or email support@rhinobitcoin.com