SALT launches crypto lending-as-a-service; announces Cion Digital as first partner

sports car surrounded by crypto symbols including bitcoin and ether signifying crypto lending-as-a-service for auto dealerships

The partnership will bring point-of-sale crypto lending solutions to 5,000+ auto dealerships

SALT and Cion Digital today announced a strategic partnership to bring SALT’s crypto lending solutions to 5,000+ auto dealerships in the US. The announcement marks the launch of SALT’s Embedded Crypto Lending Service, which will enable financial service providers and fintech platforms to rapidly deploy crypto financing solutions. 

Having launched in 2016, SALT was the first platform to offer crypto-backed loans and has since been focused on optimizing its lending technology and servicing operations. Over the past few years the Company has built a full stack loan management and risk platform that manages complex crypto loans at scale. With the launch of Embedded Crypto Lending, SALT is bringing this technology to other platforms, helping them further their mission to offer new and novel products to their customers.

“We’ve been building our direct-to-consumer lending business with the embedded model in mind from the start,” said SALT’s CEO Justin English. “From crypto native wallets and exchanges to large neobanks and traditional financial institutions, market participants are increasingly intent on digitizing their platforms to accommodate the ever-growing demand for crypto, and we’re excited to help facilitate the transformation.”

By partnering with Cion Digital, who recently announced a collaboration with CarNow and their network of nearly 5,000 dealers, car buyers will be able to use their crypto as collateral for loans at point-of sale at highly competitive rates. Car buyers will also be able to use crypto to make a down payment or pay for a vehicle in full. 

“Cion Digital is excited to partner with SALT to offer our extensive network of dealers the ability to turn on this exciting new point-of-sale financing option, which is often a lower cost loan than traditional financing options,” said Fred Brothers, President and Co-founder of Cion Digital. “With almost half of Millennials now owning crypto, we are working together to increase dealer capabilities for this fast-growing market of buyers who want more financing and payment options at the dealership.”

With Cion Digital becoming its first official partner, SALT is already experiencing an increase in demand for its Embedded Crypto Lending Service and plans to announce additional partners in the near future. 

Visit SALT’s Embedded Crypto Lending page or contact [email protected] to learn more.

Auto Dealers interested in learning more about this new point-of-sale financing option should contact Cion Digital at [email protected].

Official press release can be found here

Infographic: How SALT Stabilization preserves your crypto portfolio

SALT Stabilization not only preserves the current value of your crypto portfolio, but it also preserves the value of your potential future gains (see below for full infographic). 

Take this customer’s loan as an example. Under the previous traditional liquidation model, he would have lost more than 90% of his crypto portfolio. With SALT Stabilization however, he was able to preserve over 80% of his portfolio value during a market crash. 

If you’re someone who’s long on bitcoin and views it as a long-term investment, you’re always thinking about BTC in terms of its ATH– not only relative to what it has been in the past but also to where it could be ($100K anyone?!). No one knows where Bitcoin will be in five years or even one, but what we do know is that SALT Stabilization helps you keep a hold on your investment. 

The key takeaway here is that between the two methods outlined below, if we consider Bitcoin’s potential return to its ATH of nearly $70K, SALT Stabilization’s preservation of your portfolio would make it worth 9X the value of your portfolio under the previous liquidation method (see below). 

data showing the impact of SALT Stabilization versus the previous traditional liquidation method

To learn more about SALT Stabilization and how it works, check out our explainer video. 

Finance Strategists: Interview with CEO of SALT Justin English

image of Justin English, CEO of SALT

Introduction

Success leaves clues.

Finance Strategists sat down with Justin English, CEO of SALT Lending. He shared his thoughts on the past, present, and future of the company, as well as the insight he has gained from running the business.

Who is Justin English?

Q. Who are you and what’s your background?

I’m Justin English. I joined SALT as CEO in May 2020. Prior to my role as CEO, I was first and foremost an early customer and investor in SALT and began consulting for the company and serving on its board in fall of 2019.

Before joining SALT and entering the crypto space, I spent more than 15 years across the private equity, early stage venture capital, consumer products, supply chain, manufacturing, distribution, and consumer services industries.

An entrepreneur at heart, I’ve been personally invested with capital and have spent my career understanding business drivers to influence implementation in the real world, which has aided me in my ability to serve as an advisor to early-stage organizations as well as those that are growing and scaling.

Q. Who has been your biggest influence, and why did they have such a significant effect on you?

My college economics professor had a significant impact on my ability to think critically and bring insight into a discussion. Before each class, we were all expected to read The Economist and be prepared to discuss that week’s issue of the magazine. Our entire grade was based on these discussions and the insights we produced throughout them.

The exercise taught me to pay close attention to the nuances of the story or issue being discussed and formulate intelligent, thought-provoking questions as a result. I learned to identify the most common assumptions on which people would base the discussion and then question and poke holes in those assumptions. I’ve leaned on this tactic throughout my career and still use it today, as it always makes people stop and think, resulting in a more insightful discussion overall.

Q. Knowing what you know now, what advice would you have given your younger self?

I was extremely stubborn when I was younger and set on learning in my own way, through my own failures. If I could give one piece of advice to my younger self, it would be to use my resources and learn from the achievements and failures of those who came before me rather than repeat their mistakes and failures purely out of stubbornness.

Business

Q. What is SALT Lending?

SALT is a fintech company with a focus on crypto assets. Our mission is to build products that increase access to financial opportunities and give people more control over their ability to generate long-term wealth.

The first to offer crypto-backed lending, we accept crypto assets as collateral for cash loans, enabling crypto holders to get value out of their assets without having to sell or rely on the traditional banking system.

Aside from our lending product, we are excited about the upcoming launch of the SALT Card — a crypto-backed credit card that will allow customers to borrow against their crypto assets and use their crypto for everyday purchases without having to spend any of it, all while earning crypto rewards with every purchase.

Q. What makes SALT Lending different from its competitors?

SALT is different from our competitors in three key areas: the combined experience within our team enables us to continuously improve operational processes and make space for innovation; our management team and our ability to build and invest in value-creating technology (SALT Stabilization, StackWise, our Loan Management System, trading execution platform); and the fact that we’re leaning into transparency and compliance and have been a publicly reporting company since early 2021.

From a customer perspective, we often stand out for our customer service, as SALT customers love knowing that at any point, they can speak to a real person who can walk them through any issues they’re experiencing or answer any questions they may have.

Q. What led you to join SALT Lending?

Having started as an early investor and SALT customer back in 2017, I was among the first to ever hold a crypto-backed loan and explore SALT’s platform. I experienced the benefits and pain points of the product first-hand and later joined the Board of Directors, which enabled me to provide feedback on the technology and product offerings and offer guidance on what improvements could be made.

I continued to be a customer throughout my engagement with SALT and took on the role of CEO in 2020 with the intent to improve our lending product and expand our product suite to provide greater value for our customers.

Since becoming CEO at SALT, my goal has been to create products that incentivize people to develop strong financial habits that will enable them to build generational wealth– the SALT Card is the first manifestation of this goal, as we seek to take the traditional concept of credit and disrupt it.

With this product and future products, we want to change the way people think about debt and credit and empower them to move from building up “bad debt” to generating wealth simply by developing better habits and getting more value out of the assets they already own.

Q. What has the experience of building the business taught you?

While I’ve learned a lot from building the business at SALT, some of the greatest things the journey has taught me are leadership and softer skills, which I’ve come to realize are way more important than I’ve previously given them credit for.

Aside from that, I’ve learned the importance of pragmatism when it comes to making business decisions. I’ve seen so many peers fall into the trap of becoming too emotionally invested in something to the extent that the sunk cost bias clouds their judgment and creates a tunnel vision mindset.

I’ve always been a pragmatic person, but my experience as an entrepreneur and my current role as CEO at SALT have helped hone my ability to compartmentalize and look at things from different angles. I make a conscious effort to take a step back and look at problems from a really plain, simplistic view.

For me sunk cost equates to learning, not failure. In leading a business I’ve learned that when it comes to problem-solving and decision-making, you have to invest time and energy and take note of the process and the journey as you go along.

With this mindset, I’m able to emotionally detach from the investment itself and look at it not as a sunk cost, but as a necessary process that has enabled me to make more informed, objective, and sound decisions.

Q. Where do you see things headed for you and the company in the next five years?

As crypto becomes more widely adopted and emerging businesses continue to challenge the traditional financial system, we want to help consumers achieve financial freedom by shifting the way they think about credit and wealth.

The traditional system does not set consumers up for financial success. In fact, it does the opposite, as it is structured in such a way that encourages the accumulation of “bad debt” and borrowing against future income to enable living outside of one’s means.

Once consumers fall into this trap, it’s extremely hard for them to get out of it and it becomes cyclical. We want to fundamentally change the way people think about their finances by educating them and building products like the SALT Card that incentivize good habits like saving and building generational wealth.

Note: This article was originally published on Finance Strategists.

SALT introduces StackWise, offers crypto rewards to loan holders

StackWise logo with wallet showing bitcoin rewards

We’re excited to announce StackWise, our latest product for crypto-backed loan holders. With StackWise, you get a portion of your monthly payment back to your wallet in the form of crypto rewards. Rewards are available in Bitcoin, Ether, or USD Coin — you can choose your reward type and can change it any time prior to your next monthly payment. Once you start stacking crypto rewards, there are a couple of ways to use them: 

  1. Leave the crypto rewards in your collateral wallet to reduce your loan-to-value ratio (LTV) and minimize the risk of Stabilization 
  2. Withdraw your crypto rewards and use the funds as you wish

Note: Anyone with a crypto-backed loan that originated in 2022 is eligible for StackWise. If you have a loan that originated prior to 2022, contact [email protected]. Our Lending Team is ready to help you start earning StackWise rewards by refinancing your loan or extending the current loan terms.

Keep reading for more details on StackWise and how it works.

How it works

How do I know how much of my monthly payment I’ll get back?

With the launch of StackWise, all loans are priced at an interest rate of 9.99% with a net rate (the actual rate after crypto rewards are factored in) that depends on your chosen LTV. You can reduce your net rate even further by redeeming SALT Tokens. Once you know your net rate, you can determine your rewards rate. For example, if you take out a loan with a 30% LTV and you do not redeem SALT Tokens, your net rate will be 7.50%, meaning your rewards rate will be 4.49% (9.99% interest rate – 5.50% net rate = 4.49% rate reduction or what we call “rewards rate”). 

chart showing lending rates and rewards rates

Taking this example, if the loan amount is $5,000 with a 9.99% interest rate, you’d expect to pay $499.50 in interest over the life of the loan. 

With StackWise however, your rewards rate is 4.49%, which means you’ll get back 4.49% of the total loan amount over the course of the loan, effectively making your net rate 5.50%. Therefore if the term of your loan is 12 months, you will receive $18.71 back in crypto rewards each month for the duration of your loan. So instead of paying $499.50 in interest, you are getting crypto back each month, meaning your actual interest paid at the end of the loan will be $274.98, resulting in $224.52 saved on the cost of your loan. 

And remember, the lower the LTV you choose, the higher your rewards rate and savings will be. Add SALT Tokens to the mix, and you can save even more on your loan (and no, you can’t buy SALT from us, but if you already hold SALT, you can redeem it for a lower net rate).

UI of StackWise on desktop showing rates, monthly payments and rewards

How do I review my StackWise rewards in my dashboard?

You can review your rewards anytime via the SALT desktop or mobile app. Once you login to your dashboard, you’ll see everything from your rewards rate to rewards schedule, to your next reward amount and your total rewards earned. You’ll also see a section titled “Receive Rewards in,” which allows you to change your selection between BTC, ETH, and USDC. For example, if you set your rewards to BTC for the first 2 months of your loan and then decide to switch to USDC for the remaining months, you’ll see your initial BTC rewards in your Bitcoin wallet and then will begin to see your following rewards in your USDC wallet.

image of UI for StackWise rewards schedule

Don’t have a loan with us yet? We’d love to work with you!

Preserving Your Wealth with SALT Stabilization

man staring at two paths: one leads to liquidation and one leads to stabilization

Ever wonder why we developed SALT Stabilization? Because we wanted our lending product to better align with our mission: to build products that increase access to financial opportunities and give people more control over their ability to generate long-term wealth.

Here’s the back story. 

It all stemmed from the fact that Justin English — SALT’s chief executive officer– was a borrower with a SALT loan long before he became SALT’s CEO. Justin loved our loan product because it offered a way for people like him to get value out of his crypto assets without having to sell them. The only problem? Liquidation. After a single market crash Justin lost nearly 100% of his crypto portfolio. Having a deep understanding of the stress and pain that comes with constantly watching the market, Justin was well equipped and knowledgable when he stepped into the CEO role. He was able to take your feedback, combine it with his own experience and use it to improve our lending product.

While our existing loan product was offering ways for our customers to escape some of the constraints of traditional finance, it wasn’t meeting the second part of our mission (helping people like you build long-term wealth) to the degree we wanted it to. While we know liquidation is a necessary part of crypto-backed lending, we also knew there had to be a better way to manage our clients’ loans during market crashes. We considered all the stress that comes with market volatility, and while we had (and still have) many tools in place to help you track the health of your loan (our Loan-to-Value Ratio monitor, real-time call, text and email notifications, etc.), we also realize that no matter how diligent you are about managing your loan, sometimes the market crashes faster than any of us can handle. Being a diligent borrower himself, Justin understood this pain point on a personal level and wanted to build a better product that could address and help alleviate some of the nail-biting stress that stems from constantly watching the market.

Quote: "Nothing would give me greater peace of mind than going on vacation and waking up the morning after a market crash to know my crypto wealth has been preserved." -- Justin English, SALT CEO

Introducing SALT Stabilization

Enter SALT Stabilization, the product designed to preserve wealth and reduce stress. 

Instead of selling a portion of your crypto assets and using them to pay down your loan to restore it to a 70% LTV, with SALT Stabilization we convert your portfolio into stablecoin (USDC) once your loan-to-value ratio (LTV) hits our stabilization threshold of 90.91%. By doing so, we can offer you more control over how and when you want to restore the health of your loan. Once you cure your LTV back to a healthy level (below 83.33%), you are eligible to convert your portfolio back to the collateral mix of your choice when you’re ready.  

Depending on how you time your conversion, you may even end up with more crypto assets than you had before you were stabilized. With SALT Stabilization, you can preserve the value of your crypto portfolio, and if you time it right, you can even grow it.

SALT Stabilization in Action

Since releasing SALT Stabilization in late 2020, we’ve had some time to see the product in action and learn more about how it preserves wealth for our clients during market volatility. 

One of our customers experienced stabilization twice within a single week and converted the assets back both times. This particular customer converted his assets back fairly immediately following the first stabilization. However, following the second stabilization, he decided to wait, watch the market, and convert his assets back 80 days later. By offering him the option to leave his portfolio in stablecoin until he was ready to convert his assets back on his own terms, SALT Stabilization allowed the customer to preserve 87% of his portfolio. Had this same customer been liquidated twice under our previous model (the current model of other crypto lenders) he would only have 16% of his portfolio remaining following two liquidation events. This is a prime example of SALT Stabilization doing exactly what it was designed to do.

Old Method: Liquidation

Liquidation Method

New Method: SALT Stabilization

SALT Stabilization

By having your portfolio converted to USDC during a market crash, you’re able to preserve the value of your portfolio to a degree that traditional liquidation would not allow. 

Stabilization vs Liquidation

If you’re on the fence about choosing a crypto-backed lender ask yourself: 

“When the market crashes would I rather lose 84% of my portfolio or 13%? 

We’re pretty sure we know the answer. 

Claim Form Now Available to Eligible Purchasers of the SALT Token

A message from SALT: the claim form distributed to eligible purchasers of the SALT Token

As of today, the claim form associated with the requirements of our SEC settlement is now available for you to view on the SEC website. The E-Claim Form Portal will be available tomorrow before 11:59pm EST for eligible purchasers of the SALT Token (those who purchased SALT Tokens directly from us) who wish to submit a claim. Please note the form must be filed electronically via the E-Claim Form Portal, as claims submitted by facsimile, email or other means of electronic transmission (without the express permission of the Claims Agent) will be rejected.

To access the form, visit this link: http://www.saltoffer.com/. Please note that as an eligible purchaser, you will need the email address you used to purchase SALT Tokens.

Have questions? 

Check out our FAQ. If you do not find the answer you need or have questions about how to complete the form, please contact [email protected]

Introducing SALT Connected Accounts – UPDATED (August 25, 2021)

UPDATE: Due to the fact that Zabo has joined Coinbase, they are shutting down the API for connected accounts, meaning we will no longer be able to offer this feature.  

Want to see all of your crypto assets in one place?

Now you can with SALT Connected  Accounts. 

This new feature allows you to add your external accounts and wallet addresses to track all of your crypto assets right from the SALT app.

With a holistic view of your assets, you can manage your loan more intelligently than ever.


iphone rendering

Get Started with SALT Connected Accounts

Disclaimer: Link your cryptocurrency account via read-only API access or blockchain address tracking. Account data is for informational purposes only and will not constitute loan collateral.

SALT announces the SALT Card

Waitlist now open for the first crypto-backed credit card designed to help you HODL.

Today we announced our concept for the SALT Card, the first crypto credit card that lets you use your crypto to buy anything — from large purchases like vacations to everyday purchases like coffee and groceries– without selling or spending any of your crypto. Unlike other cards on the market that encourage you to spend your crypto, the SALT Card is designed to help you HODL and stack sats by earning bitcoin rewards on every purchase. No credit check required.

Already sold on the concept? Join our waitlist to stay in the know or keep reading to learn more.

Credit card - whether its for video
SALT Credit Card fanning out gif

How will the SALT Card work? 

With the SALT Card, your crypto is your credit. This means we won’t ask for your credit score or do a credit check because your digital assets (not your credit score) will secure your line of credit and determine your credit limit. 

We designed it this way because we know you want to get the most out of your crypto assets without having to sell them. 

How is it different from a crypto-backed loan?

While the SALT Card is secured by your crypto assets, it’s different from a crypto-backed loan in that you can choose to borrow only what you need, and you only pay interest on an existing balance. Like a traditional credit card, if you pay the balance off each month, you won’t owe any interest. Plus, by having a physical SALT Card, you will be able to use it in the same places and for the same purposes as the other credit cards in your wallet.  

What makes the SALT Card stand out? 

Here are just a few of the existing benefits. We’re still in the early stages of developing the card and are currently in search of a card partner.

Benefits of the SALT Credit Card

Once we have a partner on board, we will be able to finalize the card rewards and any additional benefits. In the meantime, we’d love to hear your input on what you value most in a crypto credit card. 

We’re excited to be launching a new product and hope you’ll join our waitlist to receive the latest updates in the development of the SALT Card.

If you are connected to a major credit card partner and are interested in working together, please contact [email protected] We’d love to hear from you and explore opportunities.

Disclaimer: By joining the waitlist you agree to receive marketing communications from SALT. The waitlist does not guarantee that you will receive a SALT Card. SALT Card will be subject to eligibility requirements, including geographic and suitability limitations. Fees and terms are not final and are subject to change at any time in SALT’s sole discretion.

SALT partners with Percent, gives investors exposure to private credit assets linked to cryptocurrency

SALT Now Partnering with Percent

We fielded demand from users to invest in SALT loans for years and are now excited to partner with Percent (formerly Cadence), a leading and innovative financial technology platform providing access and efficiency for investors and originators in the private credit industry.

We are proud to say that we have already successfully funded seven deals with Precent with an average deal size of $1.8MM. For more info, see our deals page. 

Update regarding our supported collateral types

Effective May 25, 2021, we will no longer accept Dash and Doge as collateral for new crypto-backed loans, nor will we support future deposits of these collateral types, but for those who already have Doge and Dash on our platform, we will continue to support and monitor your collateral. Withdrawals will continue to be available as usual for anyone who currently has Doge or Dash on our platform.

We are constantly evaluating our current collateral types and considering new ones based on market conditions and other parameters. Given Doge and Dash do not meet our current collateral requirements, it is necessary for us to remove them from the platform at this time. While we are sad to say goodbye, it doesn’t mean it’s goodbye forever. And who knows? Between Elon’s tweets and Coinbase’s decision to list Doge, maybe one of these collateral types will be back before you know it. Only time (and market conditions) will tell.

In the meantime, we continue to support many beloved cryptocurrencies as collateral for crypto-backed loans including BTC, ETH, LTC, BCH, PAX, PAXG, USDC, TUSD and SALT.

Want to be kept in the loop regarding announcements and products releases? Sign up for our newsletter.

The first card that lets you use
your crypto for everyday purchases,
without selling any of it.

The first card that lets you use
your crypto for everyday purchases,
without selling any of it.

Three SALT credit cards floating