SALT Lending is now set on providing better liquidity in its services to holders and lenders. SALT Lending has apparently issued $40 million in asset-backed loans for crypto investors, without making to sell off assets.
After spending two full years post 2015, the company rolled out its first loans dedicated on development of technology to make the loans work. SALT Lending relies on a multi-signature wallet that allows counter-parties in a transaction to both access the account and a software service that marks to market the value of the cryptocurrencies held as assets.
SALT Lending was founded by Blake Cohen, a former real estate executive for his family’s own business, SALT Lending is Cohen’s first venture into cryptocurrency entrepreneurship.
Cohen says the idea for the service didn’t require a lot of mental effort. He said,
“Cryptocurrencies and blockchain assets make the ideal collateral,”
In typical asset-backed lending the assets need to be located, seized and liquidated for lenders to be made whole. With cryptocurrencies, all of those problems go away, says Cohen.
The initial investment to build the business at SALT is lending has come from the company’s own assets and through SALT Blockchain Asset Management, which is a fund with several individual limited partners.
For now, the company is providing services to individual borrowers, but Cohen foresees a time when exchanges, miners and large tokenized startups can gain additional liquidity through the collateralized loans. Cohen said,
“The current market cap [for cryptocurrencies] is $400 billion, and that is totally un-leveraged. That is a gigantic inefficiency in the market,”
The company currently offers 36-month loans and (depending on the loan to value ratio) the company will loan up to 60 percent of the value of the cryptocurrency collateral, says Cohen. Interest rates on the loans range from 12-22 percent, Cohn says. SALT Lending is only lending against Ethereum and Bitcoin for the moment.
SALT lets you leverage your blockchain assets to secure cash loans. We make it easy to get money without having to sell your favorite investment.
SALT streamlines every step of the loan. We’ve simplified the application process by focusing on the value of the borrower’s blockchain assets instead of their credit score. Borrowers are automatically matched with capital from our extensive network of lenders. SALT keeps collateral assets safe in a fully-audited, ultra-secure architecture during the life of the loan so members can borrow with confidence.
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