Cantor Fitzgerald, Wall Street Companies Will Lower Crypto Lending Costs, SALT CEO Says

The influx of traditional finance giants like Cantor Fitzgerald and banks into crypto lending is a net positive that will lower capital costs, but crypto-native lenders must leverage their expertise and community trust to remain competitive, said Shawn Owen, CEO of SALT Lending.

Speaking with Benzinga, Owen emphasized that these institutions will likely partner with firms like SALT to navigate the complexities of digital asset lending.

"The entrance of players like Cantor Fitzgerald and traditional banks into crypto lending is a net positive, it will likely drive down the cost of capital as more institutions look to earn yield through Bitcoin BTC/USD and digital asset exposure," Owen said.

However, he noted that managing digital custody and underwriting crypto-backed loans requires nuanced expertise.

"We believe many of these institutions will ultimately look to partner with crypto-native lenders like SALT who have the platforms, experience, and trust of the community to bridge that gap."

Owen's comments come as SALT Lending announced the launch of SALT Shield, a no-liquidation solution for Bitcoin-backed loans.

According to a press release shared with Benzinga, SALT Shield protects borrowers from margin calls and forced liquidations due to market volatility, offering "peace of mind" and "no surprise tax events."

The feature, structured as an overcollateralization buffer backed by SALT's treasury and customer-supplied assets, has already protected over $20 million in collateral within a week of its launch.

Also Read: Public Company Bitcoin Holdings Are A ‘Megatrend’ Just Getting Started, Says Bitwise’s Matt Hougan

SALT Shield is an optional feature that borrowers can activate for a one-time fee, ensuring protection for the loan term but preventing withdrawal of excess collateral to maintain security.

"We're seeing strong demand for SALT Shield from long-term Bitcoin holders, especially those who want to avoid triggering a taxable event or who simply want peace of mind knowing their Bitcoin won't be at risk of liquidation," Owen said.

The press release highlighted additional benefits, including flexibility in managing monthly payments and protection against market downturns.

Addressing the broader crypto lending industry, Owen stressed the need for transparency and innovation to rebuild trust after the 2022 collapses of firms like Celsius and BlockFi.

"Rebuilding trust remains the industry’s top priority. That means more transparency, especially around rehypothecation, stronger balance sheet protections, and better education to help customers assess lender risk," he said.

He also sees centralized platforms like SALT coexisting with DeFi protocols by offering personalized support and security while incorporating DeFi's custody and access innovations.

Read Next:

• Governments Can Use Decentralized Security Without Sacrificing Sovereignty, Naoris CEO Says

Image: Shutterstock