A detailed, balanced review of SALT Lending: history, LTV tiers, rates, custody practices, the 2022 crisis, pros and cons, and alternatives including Borrow by Sats Terminal.
Arkadii Kaminskyi
Arkadii Kaminskyi
Head of Operations at Sats Terminal
Head of Operations at Sats Terminal with 5 years of experience in crypto. Specializes in DeFi, yield farming, and borrowing — has reviewed 50+ crypto products.
When most people trace the origins of Bitcoin-backed lending, they end up at SALT Lending. Founded in 2016 and launched publicly in 2017, SALT was among the first companies to offer structured, institutional-grade loans secured by cryptocurrency — and SALT bitcoin lending became shorthand for the entire category in its early years. Nearly a decade later, SALT remains operational, though its story is complicated by regulatory scrutiny, a crisis period in 2022, and a market that now looks very different than it did at launch. This review covers how SALT works, what it costs, who it serves, what happened during the turbulent 2020–2022 period, and how it compares to alternatives including Borrow by Sats Terminal, an aggregator that lets you compare CeFi and DeFi bitcoin loan offers in one place.
SALT — an acronym for Secured Automated Lending Technology — was incorporated in 2016 by Shawn Owen and a team of co-founders in Denver, Colorado. The concept was straightforward but novel for its time: allow cryptocurrency holders to pledge their digital assets as collateral and receive fiat or stablecoin loans without liquidating their holdings.
In 2017, SALT conducted an Initial Coin Offering (ICO) for its SALT token, raising roughly $47 million. The token was marketed as a membership unit that would grant holders access to SALT's loan products at preferential rates. This ICO would later draw regulatory attention. In September 2023, the U.S. Securities and Exchange Commission (SEC) filed a civil action against SALT, alleging the 2017 ICO constituted an unregistered securities offering. SALT reached a settlement with the SEC without admitting or denying the findings, agreeing to pay disgorgement, prejudgment interest, and a penalty. The case is publicly documented in SEC records and worth reviewing if regulatory history is a factor in your decision.
During 2017–2019, SALT grew rapidly alongside the broader crypto lending boom. It attracted thousands of borrowers ranging from individual HODLers to small businesses seeking working capital without selling Bitcoin. The platform expanded its collateral options beyond BTC to include Ethereum (ETH), Litecoin (LTC), and others depending on jurisdiction.
Then 2022 arrived. The collapse of Terra/LUNA, the bankruptcy of Celsius and Voyager, and the implosion of FTX created a systemic shock that hit every CeFi lender. SALT was not immune. The company suspended withdrawals and new loan originations for a period while it assessed its exposure and worked to stabilize operations. It eventually resumed services and has been operating since, though it has a smaller footprint than at its peak. Understanding this history is essential context for any prospective borrower — as crypto lending carries risks that go beyond interest rate comparisons.
SALT operates as a centralized finance (CeFi) lender, meaning you interact with SALT as a company rather than with a smart contract. The process follows a clear sequence:
For a deeper look at how Bitcoin-backed loans work mechanically, including liquidation cascades and health factor monitoring, our learning hub covers the full picture.
The tiered LTV structure is one of SALT's defining features. Rather than offering a single LTV, the platform (at least historically) lets borrowers choose a position on the risk spectrum:
| LTV Tier | Borrowing Power (per $100K collateral) | Risk Profile | Rate Effect |
|---|---|---|---|
| 20% LTV | $20,000 | Very low liquidation risk | Lowest rates offered |
| 30% LTV | $30,000 | Low liquidation risk | Slightly higher rates |
| 50% LTV | $50,000 | Moderate risk | Mid-tier rates |
| 70% LTV | $70,000 | Higher liquidation risk | Highest rates offered |
The logic is intuitive: the more of your collateral's value you borrow against, the more exposure the lender takes on, and the more you pay in interest. A borrower who takes 20% LTV is extremely unlikely to face liquidation unless Bitcoin collapses by 80% or more without warning — an event that, while not impossible, is far outside normal market swings. A 70% LTV borrower can be liquidated during a routine 30-40% Bitcoin correction.
Understanding your loan-to-value ratio and its relationship to liquidation risk is foundational to using any Bitcoin lending platform safely. For guidance on keeping your LTV at a level you can manage, see our resource on optimizing your LTV ratio.
SALT has historically catered to borrowers seeking at least $5,000, with the sweet spot being loans in the $25,000–$500,000 range. The platform has also marketed institutional-grade solutions for entities holding larger Bitcoin treasuries. Minimum collateral requirements align with these minimums — if BTC is priced at $50,000, for example, a $5,000 loan at 50% LTV requires roughly 0.2 BTC. For larger organizations, SALT offers custom structures. Institutional crypto lending has different considerations than retail borrowing, and SALT is one of the more established options in that segment.
SALT does not publish a live rate feed in a way that allows for precise, real-time comparison. Rates are quoted during the application process and depend on loan size, LTV tier, borrower profile, and potentially jurisdiction. Based on historical reporting and user accounts, SALT has offered APRs generally in the high single digits to low-to-mid teens, with the most competitive rates reserved for lower LTV tiers and larger loan sizes.
| Parameter | Typical Range (Historical) | Notes |
|---|---|---|
| Annual Percentage Rate (APR) | ~8% – 15%+ | Varies by LTV, size, and market conditions |
| Origination fee | 1% – 2% of loan amount | May vary; confirm at application |
| Minimum loan size | ~$5,000 | Effectively higher for institutional products |
| Loan term | 12 months (typical); extensions possible | Custom terms for institutional deals |
| Margin call threshold | Triggers when collateral value drops to a set LTV ceiling | Borrower must add collateral or repay |
| Liquidation | If margin call not met within window | Partial or full depending on shortfall |
Important: The rates above are drawn from historical context and public reporting. Always request a firm quote from SALT directly during your application, as rates change with market conditions. Do not rely on any single source, including this review, for current pricing.
If you want to understand how lenders set these rates and what a "good" rate looks like in the current environment, our guide on how crypto lending rates are determined is a useful starting point. You can also read about variable vs. fixed interest rates to understand how SALT's fixed-rate structure differs from DeFi protocols where rates adjust algorithmically.
Historically, holding SALT tokens (the ERC-20 utility token from the 2017 ICO) granted borrowers discounted rates or priority access. Following the SEC settlement and market evolution, the practical relevance of the SALT token for current borrowers has diminished. Before factoring token-based discounts into your planning, verify directly with SALT what — if any — token utility currently exists.
This is one of the most critical sections of any CeFi lending review. When you pledge Bitcoin to SALT, you lose direct control of that Bitcoin for the duration of the loan. SALT takes custody — meaning your private keys are held by SALT or its designated custodial partners, not by you.
SALT has stated that it uses institutional-grade custody solutions and has worked with custodians such as BitGo in the past. However, custody arrangements can change, and the level of transparency around exactly how collateral is stored, whether it is segregated, and whether it can be rehypothecated (lent out or pledged elsewhere) is not always fully disclosed to retail borrowers.
Rehypothecation is the practice of a custodian or lender reusing pledged collateral — lending it out to another party or using it as collateral in its own borrowing. This is common in traditional finance (prime brokerage, securities lending) and was widespread in CeFi crypto lending. The 2022 crisis exposed how dangerous this practice can be: if a platform rehypothecates your BTC to fund its own yield-generation strategies and those strategies fail, your collateral may not be recoverable.
SALT's collateral rehypothecation policies have not always been comprehensively disclosed in public-facing documents. Prospective borrowers should ask SALT directly: Is my collateral ever lent, pledged, or used in any activity beyond being held as security for my loan? If the answer is not a clear "no," that is a meaningful risk factor. The distinction between custodial and non-custodial lending arrangements is explored in depth in our guide on custodial vs. non-custodial loans.
SALT has discussed insurance coverage for custodied assets, and institutional custodians like BitGo carry crime insurance policies. However, insurance terms, coverage limits, and exclusions matter enormously. Verify the current status of any insurance coverage directly. SALT, as of this writing, does not operate a real-time, publicly auditable proof-of-reserves system comparable to what some DeFi protocols offer through on-chain transparency. For more on why proof of reserves matters, see our glossary entry on proof of reserves.
No honest review of SALT can skip this chapter. The year 2022 was catastrophic for CeFi lending. The sequence of events:
SALT was affected. The company suspended loan originations and withdrawals during this period while working to stabilize its balance sheet. SALT's CEO at the time communicated publicly with users about the situation, and the platform ultimately resumed operations. SALT was not among the platforms that filed for bankruptcy, which distinguishes it from Celsius, Voyager, and BlockFi — though the experience was clearly disruptive for borrowers whose funds were temporarily inaccessible.
SALT also settled the SEC civil action related to its 2017 ICO in 2023, agreeing to pay disgorgement plus interest and a civil penalty. The settlement is a matter of public record and does not constitute an admission of wrongdoing, but it is a relevant data point for any due diligence process. The full CeFi vs. DeFi lending comparison covers how these structural vulnerabilities in CeFi compare to the risks inherent in DeFi alternatives.
The 2022 crisis taught a generation of crypto borrowers about counterparty risk — the possibility that the entity on the other side of your contract fails to fulfill its obligations. In lending, this cuts both ways: the lender may not return your collateral if it becomes insolvent, and the borrower may not repay. SALT survived 2022, but the episode is a permanent reminder that CeFi lending is not risk-free, regardless of how established a platform appears.
Our guide on how to choose the best crypto lending platform for you outlines the full framework for making this decision, covering factors like custody model, rate structure, geographic availability, and minimum loan size. It is worth reading before submitting any application — SALT's or otherwise.
The Bitcoin lending space has matured considerably since SALT launched. Here is how SALT compares to its primary alternatives:
| Platform | Type | KYC | Custody Model | Min Loan | Rate Structure | Key Distinction |
|---|---|---|---|---|---|---|
| SALT Lending | CeFi | Yes | Custodial (SALT holds BTC) | ~$5,000 | Fixed, tiered by LTV | Oldest BTC lender; institutional focus |
| Ledn | CeFi | Yes | Custodial (Ledn/BitGo) | ~$1,000 | Fixed | BTC-only collateral; proof of reserves published |
| Unchained Capital | CeFi/2-of-3 multisig | Yes | Collaborative custody (borrower holds 1 key) | ~$10,000 | Fixed | Non-custodial-adjacent; borrower retains a key |
| Nexo | CeFi | Yes | Custodial | ~$50 | Variable/fixed tiers | Low minimums; broad asset support; EU-focused |
| Coinbase Borrow | CeFi | Yes (Coinbase account) | Custodial (Coinbase) | ~$1,000 | Variable | Integrated with Coinbase; limited LTV (up to 40%) |
| Strike | CeFi | Yes | Custodial | Varies | Fixed | Lightning-native; USD-focused; limited geographic reach |
| Aave v3 / Morpho (via DeFi) | DeFi | No | Non-custodial (smart contracts) | No minimum | Variable (algorithmic) | On-chain; permissionless; liquidation via protocol |
| Borrow by Sats Terminal | Aggregator (DeFi + CeFi) | No | Non-custodial | No minimum | Shows best rate from pool of lenders | Compares multiple lenders; handles bridging/wrapping |
Ledn focuses exclusively on Bitcoin-backed loans and publishes biannual proof-of-reserves attestations, which distinguishes it meaningfully from SALT on the transparency front. It is a strong alternative for borrowers who want a CeFi loan but want more visibility into collateral management. Ledn's "B2X" product even offers a mechanism to double Bitcoin exposure, which is entirely different from what SALT offers.
Unchained's 2-of-3 multisig structure is the most important structural differentiator in the CeFi space. The borrower holds one of three keys; Unchained holds one; a third-party key agent holds the third. Unchained cannot move your Bitcoin without your key. This collaborative custody model substantially reduces counterparty risk compared to SALT's fully custodial approach. The tradeoff is higher minimums and a more involved onboarding process.
Nexo offers very low minimums and a wide range of supported collateral types. It is primarily Europe-focused and has faced its own regulatory challenges in various jurisdictions. For smaller borrowers who need flexibility, Nexo may have lower friction than SALT.
For existing Coinbase users, the integrated borrowing product offers convenience but limits LTV to roughly 40% of Bitcoin holdings and uses a variable rate. It is best viewed as a convenient option for existing Coinbase customers rather than the most competitive product in the market.
Strike's product is primarily USD-focused and Lightning-native. Availability is limited. It may be useful for very specific use cases but is not the most feature-rich option for larger Bitcoin loans.
For a comprehensive look at the full landscape, our 2025 complete guide to Bitcoin borrowing ranks and reviews the major options in detail.
Whether SALT turns out to be right for you or not, the decision-making process benefits from having comparison data. That is where Borrow by Sats Terminal enters the picture — not as a direct competitor to SALT, but as a complementary tool for borrowers who want to understand the full range of options before committing.
Borrow is an aggregator, not a lender. It connects to multiple DeFi protocols (currently Aave v3 and Morpho Blue) across multiple blockchains (Base, Ethereum, Arbitrum, Polygon, Optimism, and BSC) and surfaces the most competitive borrowing terms available at any given moment. When you use Borrow, you compare offers from across the DeFi ecosystem in real time, rather than receiving a single quote from a single lender.
The practical use case: if you are considering a SALT loan, you can simultaneously check what Borrow surfaces from Aave v3 or Morpho. If DeFi rates are lower and you are comfortable with the non-custodial model, you may get a better deal. If SALT's fixed rate, fiat disbursement, and structured loan terms better fit your situation, you go with SALT having confirmed it with real comparison data.
This is exactly what a well-informed borrower should do — and what the CeFi vs. DeFi analysis recommends: understand both worlds before deciding which trade-offs to accept. For users who are new to comparing loan structures, our guide to evaluating crypto lending platforms provides a systematic checklist.
Borrow also supports use cases that SALT does not directly serve: smaller loans, users without KYC eligibility, borrowers on non-U.S. jurisdictions, and users who want to retain full self-custody of their Bitcoin throughout the loan lifecycle. For anyone considering a tax-efficient strategy to access liquidity without selling, the non-custodial approach adds an additional layer of control that CeFi cannot match.
Common Questions
As of the time of this writing, SALT Lending has resumed operations following its 2022 disruption period and has settled its SEC civil action from the 2017 ICO. The company appears to be actively originating loans and serving clients. However, platform status can change. Before committing collateral, always verify directly on SALT's official website (saltlending.com) that they are accepting new borrowers in your jurisdiction, and review any recent regulatory filings or news coverage to ensure nothing material has changed.
