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

  • Download the SALT App

    Available today on the Google Play and App Store

  • Connect Your Accounts

    Connect up to 100 external accounts from the SALT app

  • Get the Big Picture

    Track all of your crypto assets in one place

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.

SALT Files Form 10, Focuses on Scalability and Growth

The filing will provide transparency into SALT’s financials, increase the company’s access to funding opportunities, and enable SALT’s expansion into the wealth management space 

Clip board with form to file representing SALT's Form 10 filing with the SEC to register the SALT Token and become a publicly reporting company.
SALT files Form 10, focuses on scalability and growth.

Today SALT Blockchain Inc., a company that provides crypto-backed loans and is expanding its product offerings to include wealth management services, announced it has filed a Form 10 registration statement with the U.S. Securities and Exchange Commission (“SEC”) in connection to its registration of the SALT Token. With this filing of the Form 10 with the SEC, SALT will officially become a publicly reporting company effective 60 days from today. 

The filing brings a new level of transparency to the crypto industry as SALT’s new reporting standards will soon match those of publicly traded companies like Apple and Tesla. “This is completely new territory for us and as we’ve gone through this process, we’ve developed a renewed focus on financial stability and profitability as we seek to grow and scale,” said CEO of SALT Justin English. “It’s a significant and positive step for the business, as our ability to meet regulatory demands and share audited financials with traditional institutions will open up new funding opportunities and will enable us to better pursue our mission and vision.” 

SALT’s updated mission– to build products that increase access to financial opportunities and give people more control over their ability to generate long-term wealth– has been a driving force behind the company’s move into the wealth management space. As part of this new business focus, SALT recently acquired trade execution technology from P3K LLC that will enable the company to offer algorithmic trading strategies to institutional and accredited investors through managed accounts.  

In addition to developing its new asset management line of products, SALT has continued to enhance its lending offering. In Q4 2020, the company launched SALT Stabilization — a product that serves SALT’s lending customers and preserves the value of their crypto portfolios in a market downturn. When it comes to lending, SALT is hyper-focused on streamlining its offerings to create a frictionless lending product that still meets compliance standards. “We recognize there’s a spectrum between DeFi and CeFi and that there are tradeoffs to each. At SALT we will soon offer products that will impart the frictionless aspect of DeFi with the added components of compliance and customer service that come with CeFi,” said English. 

SALT had a profitable fourth quarter in 2020 and is well-positioned to grow and scale as it pursues its mission to expand into the wealth management industry. With the added element of financial regulation, traditional funding institutions can feel confident in knowing that SALT is held to the highest level of reporting standards while SALT Token holders can feel confident in knowing that SALT will continue to innovate. “This has been a long process and I’m really excited about where we’ve ended up,” said English. “I’m confident we have the right team in place, the right technology, and the right goals in mind to execute on our vision. We’re in the midst of an upward trajectory and it’s clear to me that SALT has a bright future ahead.”  

For capital providers interested in investing in SALT, contact: [email protected]

For those who want to stay up to date on company announcements and product releases subscribe to SALT’s newsletter here.

SALT Granted Extension on Form 10 Filing Date

A message from SALT regarding our Form 10 filing deadine

As previously announced, part of our settlement with the U.S. Securities and Exchange Commission (SEC) requires us to file a Form 10 to register our SALT Tokens under Section 12(g) of the Securities Exchange Act of 1934.

We have been working on the registration process and have been granted a further 30-day extension on our Form 10 filing deadline by the SEC. The Claim Form for purchasers of the SALT Token (applicable to those who purchased SALT Tokens directly from the SALT before and including December 31, 2019) will be available 60 days after the date of the filing of the 1934 Act Registration (or on the date seven (7) days after the 1934 Act Registration becomes effective, whichever date is sooner). For additional information about the claims procedure see the original SEC order.

A Message from SALT on our Form 10 registration statement filing

In September 2020, SALT reached a settlement with the U.S. Securities and Exchange Commission (SEC) related to the offer and sale of SALT Tokens in our “membership token sale” or “initial coin offering” (“ICO”), in which we offered and sold digital tokens (“SALT Tokens”) starting in 2017 through 2019. As part of the settlement, we are preparing to file a Form 10 to register our SALT Tokens under Section 12(g) of the Securities Exchange Act of 1934.

We have been working on the registration process and the SEC has granted us a 75-day extension on our filing deadline — an option that was included in the original SEC order. As a result of this extension, the Claim Form for purchasers of the SALT Token (applicable to those who purchased SALT Tokens directly from the SALT before and including December 31, 2019) will be available 60 days after the date of the filing of the 1934 Act Registration (or on the date seven (7) days after the 1934 Act Registration becomes effective, whichever date is sooner). For additional information about the claims procedure see the original SEC order.

As we work to complete the registration process, we continue to remain focused on providing new avenues for our customers to grow and preserve wealth. Not only have we made significant improvements to our lending product, but we have formed partnerships that will enable us to expand the business beyond lending. We’re excited about SALT’s future and will continue to share updates and milestones via our website.

 

Update: XRP and your SALT account

hand holding a wrench

In light of the uncertainty created by the recent SEC complaint involving Ripple/XRP, we are pausing support for all new XRP deposits on our platform.

Withdrawals of XRP will still be enabled for all users.

If you have any questions about your loan secured by XRP, reply to this email or contact [email protected]

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