“We Want You to Keep Your Crypto;” SALT Adds Stablecoin USDC as Collateral Option
DENVER--(BUSINESS WIRE)--Dec 20, 2018--SALT, a company that provides financial solutions for blockchain assets, today announced it has partnered with CENTRE Consortium to begin accepting USD Coin (USDC) as collateral.
A product of a collaborative effort between Coinbase, Circle, and the CENTRE Consortium, USDC is a new stablecoin backed by the US dollar. According to Coinbase, “One USDC is a 1:1 representation of a US dollar on the Ethereum blockchain” and “each USDC is 100% collateralized by a corresponding USD held in accounts subject to regular public reporting of reserves.” From a credibility standpoint, Circle has partnered with accounting firm Grant Thornton LLP to conduct monthly audits of US dollar reserves backing the number of USDC tokens in circulation.
“At SALT, we’re constantly analyzing new collateral options with our clients in mind,” said SALT’s CTO and Interim President and CEO Bill Sinclair. “While we typically base our decision on a number of factors including the voting feature in our borrower portal, we deliberately chose to add USDC in direct response to the recent market volatility we’ve experienced. We want you to keep your crypto, and we’re hopeful the addition of USDC will help accomplish that.”
When there’s volatility in the market, it has a direct impact on a borrower’s loan-to-value (LTV), which can result in an undesired loss of collateral. Given market dips can occur at any point, SALT has added USDC to its collateral mix in response to feedback from customers regarding the need for additional transfer options that can be used outside of normal banking hours. Now borrowers can take immediate action to stabilize their LTV when there’s a rapid drop in the market.
With the addition of USDC, SALT now offers loans collateralized by Bitcoin, Litecoin, Ethereum, DOGE, USDC, or a combination of the five.
SALT offers a smarter way to leverage blockchain assets—ingeniously bridging cryptocurrency with traditional finance. Through its platform, SALT enables cryptocurrency holders to secure cash loans by collateralizing their blockchain assets. The company is committed to advancing a global blockchain-based ecosystem for consumers and enterprises. Salt Lending Holdings, Inc., operates globally with a commitment to further expand its licensed lending jurisdictions. Founded in 2016, SALT is headquartered in Denver, Colorado.
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