What Is SALT Blockchain Lending?
SALT stands for Secured Automated Lending Technology. It’s a lending platform that allows people to borrow cash by using their cryptocurrency as collateral instead of relying on traditional financial institutions.
The company was created in 2016 by early Bitcoin supporters who wanted to help crypto investors access liquidity (cash) without selling their digital assets. SALT Lending gives both individuals and businesses a way to use their crypto holdings to secure a loan while still keeping ownership of the assets.
This guide explains how SALT works, what to expect as a borrower, the advantages, and the risks you should understand before taking out a crypto-backed loan.
Key Points
- SALT Lending offers loans to members who lock up their cryptocurrency as collateral.
- It supports both personal and business loans.
- Borrowers keep ownership of their crypto and can benefit if the price rises.
- If cryptocurrency prices fall and the loan-to-value (LTV) limit is exceeded, SALT issues a collateral maintenance call—similar to a margin call in traditional finance.
- Loan terms are 12, 36, or 60 months.
- Interest rates have recently ranged from 8.95% to 14.45%, depending on LTV and loan term.
How SALT Blockchain Lending Works
SALT Lending works like a crypto-secured loan. To access the platform, users must buy a SALT token, which acts as a membership pass. Once you are a member, you can apply for a loan from SALT’s network of lenders.
- Minimum loan amount: $1,000
- Use cases: Any personal or business purpose such as paying bills, debt consolidation, buying a car, etc.
- Blockchain-powered: SALT uses ERC-20 smart contracts, which automatically enforce loan terms using secure code on the Ethereum network.
Supported Collateral Assets
Borrowers can only use cryptocurrencies stored on a public blockchain. Supported assets include:
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Ether (ETH)
- Litecoin (LTC)
- USD Coin (USDC)
- TrueUSD (TUSD)
- Paxos Standard (PAX)
- Pax Gold (PAXG)
- SALT Token (SALT)
After SALT approves the loan:
- The borrower sends their crypto collateral to SALT’s secure custodial wallet.
- SALT transfers the cash loan to the borrower’s bank.
- The borrower makes monthly payments until the loan is fully repaid.
- Once completed, SALT releases the cryptocurrency back to the borrower.
You still own your crypto during the loan, meaning any price movements—up or down—affect you directly.
Recent Issues & Recovery
Like many crypto companies, SALT was affected by the 2022 collapse of FTX. This caused SALT to temporarily halt deposits and withdrawals. Around the same time, the State of California suspended its lending license.
However, in February 2023, SALT secured $64 million in funding, allowing the company to stabilize operations and announce plans for expansion.
Requirements for Loan Approval
SALT loans do not require:
- credit checks
- minimum credit scores
- traditional financial documents
Instead, SALT evaluates:
- the value of your crypto assets,
- the type of cryptocurrency you are offering, and
- standard AML (Anti-Money Laundering) and KYC (Know Your Customer) checks.
As long as your collateral meets SALT’s requirements, you can proceed with the loan.
Understanding SALT’s Loan-to-Value (LTV) Ratios
Crypto is highly volatile. Because of this, SALT uses Loan-to-Value ratios to protect both the lender and borrower.
How LTV Works
LTV = Loan Amount ÷ Current Value of Collateral
Example:
- Loan = $100,000
- Bitcoin collateral = $155,000
LTV = 65%
If crypto prices rise, LTV drops, making your loan even safer.
If prices fall, LTV increases, and SALT may require additional collateral.
If the LTV Gets Too High
SALT uses three main LTV triggers:
| LTV Level | Action |
|---|---|
| 75% | First warning |
| 83.3% | Margin call with 48 hours to fix by lowering to 70% |
| 90.91% | Automatic stabilization with 5% fee |
What Is Automatic Stabilization?
If the value of your crypto crashes and LTV hits 90.91%, SALT automatically converts all your collateral into a stablecoin to prevent further loss.
Once the LTV returns to safe levels, you can convert the stablecoin back into your preferred crypto when you feel the market is right.
Loan Terms, Interest Rates, and Fees
SALT offers:
- 12-month loans
- 36-month loans
- 60-month loans
There are:
- No origination fees
- Interest rates from 0.95% to 9.99% (depending on LTV and loan term)
- 5% fee if automatic stabilization is triggered
- No interest paid on your collateral while SALT is holding it
Benefits of SALT Loans
Borrowers may benefit if their crypto increases in value
If you believe your digital assets will rise or remain stable, SALT allows you to keep holding them (HODLing) while still using them to unlock cash.
No credit score required
The value of your crypto—not your credit history—determines your eligibility.
Flexible usage
Borrowers can use loan funds for virtually any purpose.
Smart contract automation
Loan monitoring and LTV calculations are automated and transparent.
What Is a HODLer?
In the crypto world, a HODLer is someone who holds onto their digital assets long-term instead of trading frequently. The term started as a misspelling of “hold” and later became an acronym for Hold On for Dear Life.
Risks of Crypto Lending
Crypto lending carries more risks than traditional loans:
- Crypto market volatility may trigger collateral calls or liquidation
- Smart contract vulnerabilities
- Platform security risks (hacks, custodian issues)
- Regulatory uncertainty in crypto lending
- Unexpected stabilization events if prices crash suddenly
Both borrowers and lenders face exposure whenever the market moves sharply.
Bottom Line
SALT’s blockchain-based lending system lets crypto owners access cash without selling their assets. It offers flexibility and keeps ownership of your crypto intact.
However, crypto prices can swing widely. If your collateral drops dramatically, you may need to add more crypto, repay part of the loan, or risk automatic stabilization.
SALT can be a valuable tool for serious crypto holders—but it is essential to understand the volatility and technical risks before borrowing.
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