The continuous growth of the Cryptocurrency space has led to the emergence of various innovative products and services. Fortunately for humanity, these financial technologies are offering new instruments that are ensuring financial inclusion and freedom.
One such project is the SALT platform. Founded in 2016, it allows users to collateralize their Crypto assets to secure fiat loans. It is an exceptional opportunity for Crypto hodlers who do not want to sell their assets but want liquid.
According to Rob Odell, VP of Product and Market at SALT, initially, the company’s founders plan were to build a completely different business. However, when they approached a bank for funding applying their crypto portfolio as collateral, they were turned down. It then occurred to them there is a void they can fill in this space. The group started with testing the model by lending to friends and family in 2017.
There are loans for individuals and businesses in USD and stablecoins like USDT, PAX, and TUSD. The minimum amount you can borrow is $5000, and the maximum is $25,000,000, with a repayment ranging between three to 12 months. Also, you can choose to pay based on interest Only payments or interest-plus-principal payment alternatives. Bitcoin, ETH Bitcoin Cash, Litecoin, Dash, Dogecoin, XRP, TUSD, USDC, PAX, PAX Gold, and SALT the native token are the currency for repayment and collateral.
SALT’s prevailing interest rate is between 5.95 to 9.5 percent. Currently, loans are granted to people in countries like Australia, Brazil, Canada, Switzerland, United Arab Emirates, Hong Kong, New Zealand, Puerto Rico, and the United States but limited to the following states: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Missouri, Nebraska, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
How Does SALT Work
To secure a loan from SALT, one needs to go through the steps:
Create An Account: The first step is to set up a SALT membership account. Then digital assets must be deposited into the account. It is this fund that is going to act as collateral. The SALT Oracle Wallet is a multi-signature wallet that runs as a store of security and manages borrowing conditions. Right after this, the loan gets approved, and funds sent to your bank accounts. If you hold various cryptocurrencies, you can use a mixture of them to get the loan.
Repay Process: Based on the repayment structure you chose, adherence is crucial. All payments must go through every month without missing the payment schedule. This is essential since there are penalties for missing repayment. Besides, defaulters risk the likelihood of never being able to access credit on the platform.
Collateral Assets: After the settlement of the loan, the collateral goes back to the borrower. You can use it to access another loan if there is a need. However, that is the sole discretion of the individual. Being able to pay back your loan is a guarantee to get the underlying security back.
Insurance: SALT provides full insurance coverage for the collateral borrowers present for a loan. This a commendable move since customers rest assured their funds are safe in the custody of the lenders. There are two types of insurance made available in this scenario. They consist of Criminal and Cyber Insurance packages.
Crime Insurance package is for the protection of clients Crypto assets in cold storage on the platform, in an unlikely situation of theft. It is also insured against fraud or separate crimes perpetrated upon the SALT set up.
Under the Cyber Liability Insurance, the company wants to protect Clients data. So in the case of Internet-based perils to customers’ personal information due to a security breach or cyber threat, then they will not be any threats.
Learn More About SALT
SALT is one of the innovative projects in the Blockchain space, and we will urge you to learn more about it before you decide to use the platform or not. Joining their various communities help in understanding the project as well as interacting with the team members. Here are their social media platforms: Twitter, LinkedIn, Medium, Facebook, Youtube & Instagram.