Uphold, a digital money platform providing access to investments and payments using blockchain technology, has announced a partnership with crypto-backed lending company Salt. Together, the two plan to provide users with cash or stablecoin loans using cryptocurrencies as collateral.
Uphold’s 1.7 million users can now secure loans through Salt against their holdings in Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Dash (DASH), and XRP. The integration of the two platforms provides enhanced access to liquidity, enabling users to unlock additional value in their crypto holdings. Robin O’Connell, Uphold’s chief revenue officer, told Cointelegraph:
“Millions of Uphold users that are holding (or hodling) 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.”
SALT has also integrated Uphold wallets into its platform, allowing its growing user base to access Uphold’s products through their dashboard. The integration streamlines the lending experience for both Uphold and Salt users through collateral transfer and loan proceed payouts.
The potential of crypto-backed loans
Crypto-backed loans from Salt ultimately allow Uphold users the ability to keep their crypto and receive cash, providing an easy solution to unlock the value of their assets without having to sell them on an exchange.
It’s important to note that Salt is a centralized cryptocurrency loan platform, providing loans to users in select jurisdictions. Other crypto-backed loan providers, such as ETHLend, are decentralized and cater to users worldwide.
Unlike traditional financial institutions, Salt allows customers to use their crypto assets as collateral to secure a cash (U.S. dollar) or stablecoin loan (a cryptocurrency backed by a reserve asset) in just 24 hours. This gives users the opportunity to fund large…