Crypto-backed loans by SALT Lending have been approved in 35 states. This is a large development in the legitimization of cryptocurrency. The ability to use cryptocurrency as collateral when borrowing a losman may offer increased initiative for potential crypto investors.
This crypto-backed loan structure will allow crypto investors to keep their investments while making real-world transactions by leveraging their crypto.
Who is SALT Lending?
SALT Lending is a Colorado-based firm known for allowing their borrowers the ability to stake bitcoin and other types of cryptocurrency when applying for loans. This unique ability is beneficial to crypto-investors as they do not have to forfeit the potential future earnings of their crypto in order to make cash transactions today.
Through this type of innovative lending, SALT strives to bring together the world of crypto and traditional finance. SALTs innovative model is a significant step in making blockchain assets relevant in traditional financial dealings such as the borrowing of monetary loans.
As of now, SALT has released over $50 million of loans to more than 70,000 recipients since June 2017. The lending agency has hopes of being operational for crypto-back loans in all 50 states by the end of 2018.
Crypto-Backed Loans and the Crypto Community
Cryptocurrency adoption is increasing. However, traditional finances are still required for countless transactions.
The ability to leverage crypto can add confidence for potential investors. So, in a way, you can stay relevant within the blockchain while simultaneously maintaining security outside of it.
This development by SALT is also of importance to those who don’t own cryptocurrency. Cryptocurrency becoming a legitimate collateral option adds to its validity in the world of assets, trading, and commodification. Furthermore, it can allow potential investors to feel more comfortable and flexible when purchasing.
As more industries adopt cryptocurrency as a legitimate form of payment and exchange, the benefits of investing increase as well. With the rise of blockchain business schools and Morgan Stanley crypto jumping on board, it poses the question: Will other companies and industries follow suit?
