Cadence, a leader in the digital securitization of alternative investments, is partnering with SALT Lending to expand its offering of investment products.
Cadence is pleased to announce we’ve added SALT Lending, the pioneer of crypto-backed lending, as the latest originator on the Cadence platform. Cadence continues to work with only the highest quality specialty-finance companies in the industry to offer investors on our retail and institutional platform unique investment products with short durations, high yields, and low minimums.
SALT Lending funds loans backed by cryptocurrencies, including but not limited to Bitcoin, Ether, and Litecoin. Customers use SALT Lending when they want to receive US dollar liquidity from their cryptocurrency assets without incurring the trading costs or uncertainty involved in selling them.
SALT Lending’s extensive operational expertise and capabilities in providing services to digital asset investors has been especially crucial to the development of the partnership. The company employs a conservative approach and state-of-the-art technology in its client onboarding, account security, custody of collateral, and margin maintenance systems.
As an example, SALT Lending on average extends only 60% of the value of the cryptocurrency collateral in credit and monitors the collateral continuously to ensure margin requirements are maintained at all times. SALT Lending stores keys and data offline and liquidates collateral in the event its value falls below conservative thresholds, reducing cyber and credit risk respectively.
Founded in 2016, SALT Lending is looking to grow its business by introducing new product offerings and expanding originations of its existing crypto-backed lending product. Given the extensive financial services, legal, accounting, and technology experience of the company’s management team, Cadence is thrilled to have SALT Lending as the first blockchain-based lending partner and for the opportunity to provide investors with an onramp to this alternative asset class.
“We are regularly presented with both established and relatively new asset types by a diverse array of specialty-finance companies, but only work with the few like SALT that pass muster with respect to asset quality and originator expertise,” said Prath Reddy, Head of Capital Markets at Cadence. “Given the growth prospects, Cadence expects the partnership to be beneficial, not just for SALT, but for a growing investor base that chooses to invest through Cadence.”
Cadence is excited to work alongside SALT Lending to continue giving investors exposure to private credit assets linked to cryptocurrency and other alternative investments.
“As cryptocurrency becomes more widely adopted, we’re seeing an increasing demand for crypto-backed loans and are excited this partnership with Cadence will allow us to continue to meet that demand and grow as a business,” said Dustin Hull, VP of Finance & Controller.
“This partnership makes a lot of sense on both sides, as SALT’s continued growth in the crypto-backed lending industry combined with Cadence’s focus on alternative investments will no doubt provide long-term value to both businesses.”