What Is SALT?

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.

Process - Easy application, fast approval, and no credit checks.* Get cash deposited directly into your bank account.

Economics - Competitive interest rates with no prepayment fees. Maintain your position and avoid less-than-optimal tax events.

Liberty - Freedom to get your assets back whenever you want. Get your cash for whatever you want.

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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In the past, the difficulty and costs of liquidating, transferring, and storing assets has required lenders to focus on the creditworthiness of their borrower as well as the value of their borrower’s assets. This inefficiency results in limited accessibility to cash and higher interest rates for borrowers.

Distributed ledgers represent a paradigm shift in the storage and transfer of assets and, for the first time in history, there is a perfect form of collateral: blockchain assets. SALT is pioneering an evolutionary leap for lending in which the value of a borrower’s assets are fully recognized and credit history is made irrelevant.

Getting Started With SALT

The SALT Lending Platform allows holders of blockchain assets to leverage their holdings as collateral for cash loans. SALT is the first asset-backed lending platform to give blockchain asset holders access to liquidity without them having to sell their tokens.

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SALT provides investors with an innovative and secure opportunity to lend against a high-growth asset class through a fully-collateralized debt vehicle. SALT is traditional lending secured by non-traditional collateral.

The SALT name is meaningful to us because it hearkens back to the time in history when table salt gained use as a store of value, becoming one of humanity's first monies.

By utilizing salt as a medium of exchange for food, clothing, and other general provisions, it was salt which broke the mold of what a currency could be - there was no longer need for intrinsic value, now value was just an abstraction. SALT is also the name given to our programmed loan smart contracts as an acronym for Secured Automated Lending Technology (SALT).

SALT Lending Holdings is growing rapidly - we started with a core team of five partners and have taken on 20 additional team members so far.

Unlike a margin account on an exchange, SALT loan proceeds can be used to purchase anything, not just additional tokens. With SALT, your collateral is held in a distributed manner, reducing counterparty risk.

Exchanges, on the other hand, are centralized and opaque, and holding large amounts of tokens on them is dangerous. Our loan terms also offer borrowers greater customization and flexibility than exchange margin accounts.

Some elements of our businesses are subject to state and federal regulation within the United States and to foreign laws and regulations. Loans arranged through the SALT platform will be organized by registered investment advisors, broker dealers and banks, case depending. SALT Lending Holdings, Inc. and its affiliates will not originate loans.

SALT Lending Holdings, Inc., and the loans facilitated through the SALT Platform, must comply with applicable state and federal lending and usury law; such as: the federal Consumer Credit Protection Act, the Truth-in-Lending Act, the Equal Credit Opportunity Act, the Fair Debt Collection Practices Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Servicemembers Civil Relief Act, the Military Lending Act, the Bank Secrecy Act, the USA Patriot Act, the Electronic Fund Transfer Act, the federal Electronic Signatures in Global and National Commerce Act (ESIGN) and other federal and state laws governing privacy, data security and prohibiting unfair or deceptive business practices.

As non-bank entities, SALT Lending Holdings, Inc. and its affiliate, SALT Platform, LLC, will develop extensive best practice policies and procedures to ensure legal and regulatory compliance. On the federal level, it is our understanding that registered investment advisors, banks and broker dealers, as originators of all borrower loans arranged through our platform, satisfy the aforementioned relevant licensing requirements with respect to the origination of such loans.

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SALT Lending Holdings, Inc. and its affiliate, SALT Platform, LLC, may be subject to examination, supervision and other regulatory enforcement actions taken by the state agencies responsible for monitoring consumer credit, trade, and commerce; and federal agencies, such as the Consumer Financial Protection Bureau and the Federal Trade Commission, that administer the federal consumer protection laws, trade, and commerce in the United States.

Loans underwritten by lenders on the SALT Platform are not FDIC-insured. Investments may lose value. There is no SALT or bank guarantee.

Salt Lending has soft-capped the public membership sale at 35 Million USD. SALT does not underwrite loans. All loans are underwritten by lenders on the SALT Platform.

We are always on the lookout for talented, driven candidates. Send a note expressing your interest and a resume to [email protected] and we'll go from there. We look forward to talking to you!

How To Get A SALT Wallet?

How do I create a custom token in MEW (www.myetherwallet.com)?

Please follow these instructions to view/access your SALT balance in MEW:

Each SALT is representative of a membership to the SALT Lending Platform. The token is an ERC20 smart contract.

The Bitcoin (BTC) to US Dollar (USD) or Ether (ETH) to US Dollar (USD) exchange rate is an algorithmically calculated, volume-weighted-average rate taken from multiple sources and adjusted for statistical outliers and inactivity. The exchange rate is determined by SALT based on the aforementioned formula and is publicly displayed at SaltLending.com.

All Members must be at least eighteen-years-old (18). Individuals over the age of thirteen (13) are eligible for Membership with parental consent. No one under the age of thirteen (13) can become a Member. Parental consent can be obtained by requesting a parental consent form.

KYC and AML still apply, and additional due diligence materials may be necessary.

Distributed Ledger Technology allows for unprecedented levels of transparency, audit ability and transferability. SALT tokens are built on an Ethereum smart contract, making them among the most secure tokens available.

You should use SALT's service if you are a holder of digital assets seeking cash liquidity without liquidation or if you are interested in accessing the digital-asset credit market.

To be eligible for a SALT loan, you must have at least one membership token, own an asset on a blockchain and meet our eligibility requirements.

SALT distinguishes between loan products. You are only permitted to have one unique, outstanding loan product at a time. However, you can have different products outstanding simultaneously. As an example, you can have a line of credit as well as a fixed-rate term loan or a credit card.

To become a borrower, you need to begin by purchasing SALT Membership. Depending on which features you intend to use, varying levels of Membership are required. You then follow a few simple steps to create an account with SALT Lending.

While SALT does not perform a credit check on borrowers, we do perform full Anti Money Laundering (AML) and Know Your Customer (KYC) verification. Once a member has been verified as eligible to transact with SALT, a loan can be requested and processed.

The amount you can borrow depends on the value of the blockchain assets you have to post as collateral. Financial products offered through the SALT platform are over-collateralized, which means that you can never borrow more than the value of the asset you currently own.

You can expect to receive swift communication from SALT notifying you on your loan’s pending approval with accompanying instructions for posting collateral. Once collateral has been posted, your loan proceeds will be sent via ACH transfer to your bank account.

Depending on your bank’s internal processes, settlement of the loan proceeds may take up to seven days. The distribution of loan proceeds can be expedited for an additional fee.

In general, loan approvals are very fast and can take just minutes. SALT makes your funds available in your account as soon as we receive payment. Since SALT partners with various payment service providers in different geographic regions, the timing will vary according to your location and method of payment.

You will be notified to the status of your loan application via email, SMS text message, and a message posted to your dashboard at SaltLending.com.

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Once your application has been verified and accepted, you will receive a Loan Agreement requiring an electronic signature. After signing the document, your funds should become available within a few days.

SALT loans are exclusively collateral-based, which means that the borrower’s credit history is inconsequential. Your collateral has the same value to our lenders as anyone else on the platform, regardless of your credit score. Apart from having collateral to leverage, members need only pass AML/KYC verification and our internal eligibility screening during the application process.

At launch, only Members that are US residents, seeking loans in USD will be able to get a loan through the SALT platform. You can, however, purchase SALT Membership ahead of the platform's availability in your country. We plan to expand our geographic reach to as soon as possible.

SALT Resources

  • Official Website
  • Blog

    • How To Buy SALT?

    1. Loan Creation - A borrower sends collateral to the SALT collateral wallet and funds are transferred to the borrower’s bank account. Collateral remains the property of the borrower and any price appreciation or depreciation belongs to the borrower.

    2. Loan Repayment - A borrower makes timely, periodic payments to the lender.

    3. Loan Completion - Upon repayment of the loan, the borrower’s collateral is returned.

    You can use a SALT loan for any personal, business, or household purpose.

    If a borrower misses a payment, our Secured Automated Lending Technology automatically liquidates a portion of the total collateral to cover both the missed payment and any associated fees. If a borrower continues to miss payments, the collateral will continue to be liquidated to cover monthly payments of principal, interest and fees until the loan-to-value ratio exceeds a predetermined threshold.

    Once the default reaches the triggering threshold described above, a balance of the collateral is liquidated to cover the missed payment and to calibrate the overcollateralization. This process continues until the loan is fully retired or matures.

    Lenders may elect to receive their funds in either the currency of the original loan or the equivalent value in blockchain assets. After the principal of the loan and accrued fees are paid out of the collateral, any remaining assets are returned to the borrower.

    Each SALT loan has a fixed repayment term. Credit cards often have high, variable rates and no set repayment term.

    SALT loans are secured. This means that the borrower provides collateral for the loan.

    Our loans are non-traditional and therefore we do not require a personal guarantee. The agreement between the parties involved is focused only on the storage and use of blockchain assets as collateral.

    Through SALT, the minimum amount you can borrow is $5,000 and there is no maximum loan amount. All loans are subject to collateral value limitations, terms, conditions, eligibility and the availability of sufficient lender capital.

    The easiest way to make your loan payment is to log on to SaltLending.com and make payments electronically with Bitcoin (BTC), Ether (ETH) or any cryptocurrency supported by ShapeShift.

    Payments made with digital currencies will be converted to the base currency of your loan. You can also make payments via ACH transfer, or by setting up online bill pay through your bank. Debit and credit card payment methods are also available.

    We want to make things simple for our members. We have no origination fees, closing costs, or prepayment penalties on our fixed rate term loans. Borrowers can elect, at any time, to pay off their loans early at no additional cost to them.

    At this time, we do not offer a refinancing option for your loan. You do have the option of applying for an additional SALT loan, which you must then use to pay off your existing SALT loan or consolidate your debt.

    However, note that a new loan is considered additional debt, which may have an impact on the amount you are able to borrow. There are no prepayment penalties associated with early repayment.

    How To Earn SALT?

    In the event of a fork, the new token would be considered part of the portfolio of collateral that is supporting the loan.

    A blockchain asset is a natively digital asset like Bitcoin or a digitized traditional asset like digital gold, a stock or a title; where the record of ownership is recorded within a public or permissioned distributed ledger network. All blockchain assets have the potential to be used as collateral for a Blockchain-Backed Loan TM.

    You still own your asset and can sell it at anytime. If you choose to sell, any outstanding unpaid loan principal, interest and fees will be deducted from the value of your asset and repaid to the lender before sale proceeds become available to you.

    If the value of your blockchain asset rises, you may have the option to: add the increased value to the principal of the loan for additional capital from the lender or do nothing but continue to make payments according to the terms of the Lending Agreement.

    If the value of your blockchain asset drops enough to cause a breach of the agreed upon loan-to-value (LTV) threshold, you will be contacted by SALT Lending for a Collateral Maintenance Call.

    You will be given an opportunity to either add additional collateral or make an additional principal payment, bringing your collateral account balance back into equilibrium. The options available to you depend on the loan terms agreed to at loan origination.

    A margin call can be met with any/any combination of the following:

    1. You can add to the collateral you have posted for the loan.

    2. You can make a payment to reduce the outstanding loan balance. For details on how to make a loan payment, please reference our FAQ page.

    Please log on to your member dashboard at SaltLending.com to take action regarding a margin call.

    You will be notified via email, SMS text message and a message posted to your member dashboard at SaltLending.com.

    You will send your blockchain asset collateral to a unique, multi-signature wallet address created by our Secured Automated Lending Technology. We will provide you with further instructions during the loan application process. You will also be able to find this address by logging into your profile or by accessing your SALT collateral wallet through the SALT website or app.

    Factors such as market depth, bid/ask spreads, overall liquidity, and trading volumes may all inform liquidation activities.

    SALT is a global company. As such, we observe the banking holidays of the regions in which our members reside. Please consult your loan agreement for specific details. A banking holiday is a day in which your loan payment due date will not fall. Margin calls or collateral maintenance responsibilities are not forgone or postponed during these days.

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    Collateral deposits are stored in our proprietary, multi-signature Secured Automated Lending Technology. We do not lend out your collateral. Our key structure and business architecture ensures that your collateral is safe.

    Even if SALT were to go out of business, the collateral belonging to our customers would be safe and accessible. For more information on the SALT Collateral Wallet, check out “What is the SALT Collateral Wallet”, an article in our FAQs.

    Latest SALT News

    Non-purpose Loan Explained?

    DEFINITION of ‘Non-Purpose Loan’

    A type of loan that uses an investment portfolio as loan collateral and the proceeds of which can not be used to purchase, carry or trade securities. This type of loan allows investors access to funds without having to sell their investments. Regulations require financial institutions to disclose whether a loan is a non-purpose or purpose loan, and borrowers are required to indicate the purpose of the loan.

    BREAKING DOWN ‘Non-Purpose Loan’

    With a non-purpose loan, investors continue to receive the benefits of their portfolio holdings, such as dividends, interest and appreciation. If the value of the pledged securities declines, however, the lender may require that additional securities be put up as collateral or that part of the loan be repaid to make up for the decrease in collateral. This type of borrowing is considered an alternative to traditional margin borrowing because it allows multiple investment accounts to be used to secure a loan.

    With the SALT Lending platform, we use blockchain digital assets as the collateral for the loan for the duration of the lending period. This is held in a secure smart contract, monitored by an oracle to ensure loan performance. In the event of a loan being repaid in full (and we don’t have early repayment charges), the smart contract will release the blockchain assets back in full at the end of the term.

    This allows borrowers to put up bitcoin or ethereum as collateral, and then borrow against this to a maximum of 80% of the loan-to-value ratio without having to sell the underlying asset and having any associated taxable/capital gains events or losses being incurred.

    In the case that over the course of the loan, the underlying digital assets appreciate in value based on the market price, the LTV reduces in line, and the borrower has access to cash, and gets their digital assets back at the end of the term, which have themselves appreciated in value.

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    In the event that there is a decline in the value of the digital assets behind the loan, the Oracle will contact the borrower with a couple of options to bring the loan performance back into line. These can include depositing further collateral to bring the LTV back in line, making additional cash repayments to reduce the balance of the loan, or in the event of neither of these being possible, to liquidate a portion of the collateral to bring the LTV back into line.

    This gives both SALT and the borrower plenty of options to make sure that the loan is being repaid, and given how divisible the underlying digital assets are, to never fully liquidate collateral unless no repayments have been made.

    Moving onto the purpose of the loan, people want to borrow for many reasons. Examples of individual loan usage could include; pay for household bills, college tuition fees, a holiday, a new car, paying off other loans such as credit cards which have much higher rates of interest, or day-to-day cashflow. Businesses can also use the SALT platform, and these can be used to invest in office space, capital purchases of equipment, day-to-day cashflow or wages, as well as a plethora of other reasons.*

    We will be releasing further information here on Medium over the coming weeks, but if you want to stay up to date with all things SALT, we’re providing a variety of ways in which you can contact the SALT Team and you can follow @SaltLending, like Salt Lending on Facebook, or see our videos on our YouTube channel. We also have a handy RSS feed to this blog.