SALT, a U.S.-based Blockchain-Backed Loans provider for cryptocurrency holders, announced last week it has partnered with CENTRE Consortium to begin accepting USD Coin (USDC) as collateral. According to SALT, USDC is a new stablecoin backed by the US dollar. While sharing more details about the stablecoin, SALT’s CTO and Interim President and CEO Bill Sinclair, stated:
“At SALT, we’re constantly analyzing new collateral options with our clients in mind. While we typically base our decision on a number of factors including the voting feature in our borrower portal, we deliberately chose to add USDC in direct response to the recent market volatility we’ve experienced. We want you to keep your crypto, and we’re hopeful the addition of USDC will help accomplish that.”
The provider reported that when there’s volatility in the market, it has a direct impact on a borrower’s loan-to-value (LTV), which can result in an undesired loss of collateral. Given market dips can occur at any point, SALT has added USDC to its collateral mix in response to feedback from customers regarding the need for additional transfer options that can be used outside of normal banking hours. Now borrowers can take immediate action to stabilize their LTV when there’s a rapid drop in the market.
SALT went on to add that in the addition of USDC, it is now offering loans collateralized by Bitcoin, Litecoin, Ethereum, DOGE, USDC, or a combination of the five.