Salt: Blockchain Backed Loans
Use your crypto as collateral to get cash
If you’re a Bitcoin investor, chances are you’ve had a good year. So good in fact, that selling your reserves is not something you’d be willing to do right now. However, if times are tight it can be tempting to start shedding your crypto to raise money. Salt are looking to erase that necessity.
The main idea behind Salt is one of the most common financial services in the world: loans. Salt will provide cash loans sourced from their network of lenders, and charge interest depending on the loan term. But they are guaranteeing approval for large sums at low interest rates, if you can stump up the crypto as collateral. If you have Bitcoin, you can turn it into temporary cash, and as long as it’s paid back, you keep your previous crypto investment. No selling off, no closing accounts, no tough credit scoring.
The company have received considerable coverage in the media, and their launch is anticipated for the start of 2018. They will store crypto investments partly in cold storage and partly on the blockchain to safeguard against price volatility. And they are hot on security, enlisting the likes of Exodus and Jaxx as strategic partners.
Of course, a loan is a loan. If you can’t pay it, don’t get it. You’ll lose your crypto if you break the terms – but that’s just like any loan. On that, the issue of responsible lending should at least be a non-entity here – the advantage of a collateral loan is that you can’t get what you don’t already have.
Watch this space – we’ll update you with the latest news as Salt prepares for launch.