SALT, which started providing bitcoin-backed loans in 2016, originally focused on serving bitcoin miners—those who validate transactions on the blockchain in exchange for $BTC rewards. Recently, however, the lender has experienced a surge in interest from institutional borrowers, as well as from “Gen Xers and baby boomers owning bitcoin who seek guidance on the loan process.”
Although SALT has not revealed its cumulative loan volume throughout its history, the overall centralized lending sector is seeing remarkable statistics.
Ledn, a centralized lending platform that launched in 2018, has offered over $11 billion in loans thus far. The company anticipates that this figure could escalate to $1 trillion in the coming years as an increasing number of customers turn to non-trading loan options.
Ledn’s lending activities and expanding client base highlight the growing mainstream acceptance of crypto-backed loans.
“Our clients range from traditional investors aiming to optimize their bitcoin assets to entrepreneurs seeking working capital and even institutional entities,” stated Adam Reeds, co-founder and CEO of Ledn, in an interview with CoinDesk.
He noted that Ledn’s high-net-worth clients tend to borrow substantial sums for purposes such as investment, real estate, business needs, or funding their children’s education. Conversely, retail customers typically request smaller amounts for immediate expenses, like covering a month’s bills when their primary income is insufficient.