Uphold Ties with Salt to Bring Crypto Lending Services to Its Users
Blockchain-based financing company Uphold has partnered with crypto-backed lending company Salt to offer loans in cash and crypto using digital currencies as collateral.
Reported by CoinTelegraph on Friday, this will allow the users of Uphold, which the firm claims to be around 1.7 million, to issue loans from Salt using six digital currencies – Bitcoin, Ether, Litecoin, Bitcoin Cash, Dash, and XRP – as collateral.
Commenting on the partnership, Robin O’Connell, Uphold’s chief revenue officer, told the publication: “Millions of Uphold users that are holding cryptocurrencies might want access to those funds without having to sell their crypto assets. The partnership with Salt allows users to free up liquidity while maintaining the potential upside of the underlying crypto asset.”
Crypto lending – a profitable business
The crypto market is a huge market for crypto loans and they have been profitable in spite of the bear market. Over the last few years, companies like MakerDAO saw a lot of demand.
MakerDAO recently proposed raising its loan ceiling to $120million, as the existing $100 million ceiling was being breached. The foundation increased the loan ceiling to $120 million last year by increasing the range of its initial set loan ceiling to $50 million.
Many crypto players are jumping in to the lending market because of its lucrative nature. Blockchain.com, a crypto platform well-known for its Bitcoin wallets has recently announced a crypto lending portal for institutions.
Salt, unlike most crypto lending platforms, is centralized and offers its services to a limited number of jurisdictions.
“Uphold users have the ability to customize their loan application by selecting their preferred loan type, loan amount and duration as well as their Loan-to-Value ratio (LTV). SALT currently offers loan-to-value ratio options of 30% to 40%, 50%, 60%, 70% and 70% for cryptobacked loans. Customers do not need to pass a credit or income test,” Rob Odell from Salt, Vice President of product and Marketing, said to the publication.