íàçâàíèå

Such Borrow, Many Loan: Crypto Lender SALT Now Takes Dogecoin as Collateral

Such Borrow, Many Loan: Crypto Lender SALT Now Takes Dogecoin as Collateral

Cryptocurrency investors have another way to access capital without having to liquidate their portfolios. SALT Lending, which has issued more than $50 million in blockchain-backed loans, is capitalizing on the liquidity in dogecoin and has begun offering loans in USD collateralized by longtime crypto darling DOGE. Dogecoin’s profile has been on the rise in recent months as investors have flocked to the altcoin while leaving others out in the cold.

SALT promoted the coin addition subtly on social media by adding Doge, a “Japanese dog breed Shiba Inu” who is the dogecoin mascot, to its Twitter profile. In addition to dogecoin, SALT also supports loans backed by litecoin (LTC), bitcoin (BTC) and ethereum (ETH).

“The majority of loans are collateralized by bitcoin, though some loans are collateralized by ethereum, litecoin or a combination of the three. We are excited to have Doge as our newest collateral type,” Jennifer Nealson, SALT’s chief marketing officer, told CCN.

Source: Twitter

DOGE boasts a market cap of $500 million and trades on many popular cryptocurrency exchanges with one notable exception, Coinbase. While rumors have been circulating that Dogecoin community leaders are pursuing a Coinbase listing, the DOGE team rebuffed those claims.

In the announcement, SALT described dogecoin as an “internet sensation,” one whose value has recovered in 2018 while other altcoins have suffered. DOGE, whose value is up approximately 80 percent since mid-August, has made its way to the top 21 cryptocurrencies, having recently surrendered the no. 20 spot to privacy coin zcash (ZEC).

According to GitHub,”Dogecoin is a cryptocurrency like bitcoin, although it does not use SHA256 as its proof of work (POW). Taking development cues from Tenebrix and litecoin, dogecoin currently employs a simplified variant of scrypt.”

SALT Lending

SALT’s Nealson explained to CCN that, depending on their jurisdiction, borrowers can use the funds either for personal or business reasons. “SALT transfers the loan amount to the borrower’s bank account to be used by the borrower,” she said.

Incidentally, earlier this month, SALT began issuing USD loans backed by litecoin, at which time it revised its interest rate model to include rates as low as 5.99 percent for loans less than $75,000 and 11.99 percent for loans up to $25 million. With the addition of dogecoin, SALT integrated a voting system for new coins that borrowers want to see on the platform.

“We’re listening to members of our community and are continuing to learn what’s most valuable to them. Currently, people can vote on ETH Classic, Monero, XRP, Cardano, Dash, Bitcoin Cash, or they can fill in their own recommendation, as we’re always working to expand our collateral offerings,” said Nealson.

Competitive Landscape

Perhaps the next area of focus will be stablecoins, which are the latest trend in the cryptocurrency community. BlockFi, which is a competitor to SALT Lending that similarly offers loans backed by cryptocurrency, in recent days announced its support for Gemini Dollar (GUSD) as collateral for USD loans. GUSD is the stablecoin that was issued by Cameron and Tyler Winklevoss’ crypto exchange, Gemini. In addition to GUSD, BlockFi also added support for litecoin-backed loans, though it’s not a stablecoin.

Meanwhile, SALT has experienced rising demand for its crypto-backed loans from the “UK, New Zealand, Hong Kong and Vietnam,” and the firm recently expanded its reach in the U.S. to 35 U.S. states.

Featured Image from Shutterstock


• Join CCN's crypto community for $9.99 per month, click here.
• Want exclusive analysis and crypto insights from Hacked.com? Click here.
• Open Positions at CCN: Full Time and Part Time Journalists Wanted.
19.10.2018 / 12:25 11
Salt to Offer Crypto-Backed Loans in 7 Global Markets, 15 More US States Salt to Offer Crypto-Backed Loans in 7
Salt, a cryptocurrency-backed loan service, has announced plans to launch operations in seven new jurisdictions throughout the world, while offering
Dogecoin DOGE/USD Only Double Digit Gainer: Above 20% as Doge-Ethereum is Announced Dogecoin DOGE/USD Only Double Digit
For the past few months Dogecoin has been making various major announcements as an attempt to keep up with the growing crypto-verse. The latest now
Cryptocurrency-Backed Loan Service SALT Lending Expands Network to 35 States Cryptocurrency-Backed Loan Service SALT
Cryptocurrency-collateralized loan provider SALT Lending has announced that it is now operational in 35 U.S. states after receiving regulatory
Crypto Lender SALT Now Available in 35 States Crypto Lender SALT Now Available in 35
SALT, one of the earliest cryptocurrency-backed lending providers in the space, announced this week it was expanding into 20 more states in the US,
Why Bitcoin-Collateralized Loans Still Work in a Bear Market Why Bitcoin-Collateralized Loans Still
Despite talk of Bitcoin heading higher in the second half of 2018, many long and short-term holders are growing impatient – or are even being
Crypto-to-Cash Lending is Growing Quite Popular These Days Crypto-to-Cash Lending is Growing Quite
Over the past year, cryptocurrency-backed lending has grown very popular with organizations like Salt Lending, and Unchained Capital trying to
Comments (0)
Add a comment
Comment on