SALT Lending recently secured a funding round to restore its financial stability and resuming operations. The firm aims to regain trust in the market by promoting transparency and establishing a robust reserve in funds.
SALT Lending Secures $64.4 Million in Series A Funding
SALT Lending recently raised $64.4 million through a Series A funding round from accredited investors. The funding round comes after the planned sale to Bnk to the Future fell apart due to the failure of FTX. The capital raised will be used for developing new products and furthering the company’s growth plans, per a press release draft shared with CoinDesk.
The purpose of this new funding was to restore SALT’s financial stability by increasing its balance sheet and capital reserves. If regulatory authorities approve, SALT aims to resume full operations by the beginning of Q1 this year.
SALT Lending was established in 2016 by a team of Bitcoin enthusiasts. They created a blockchain-based financial application that provides lending services. The platform allows clients to use their cryptocurrency holdings as collateral for borrowing and offers personal and business loans.
Crypto Lending Crisis Over The Past Year
In November of the previous year, customers of SALT Lending were notified that the platform had temporarily stopped allowing withdrawals. The notice was reportedly communicated in a letter from SALT’s CEO, Shawn Owen. According to the letter, SALT was impacted by the collapse of FTX and could not provide specific details on the extent of the impact.
Many leading crypto lending companies have faced severe setbacks within a year. Last week, Genesis became the latest addition to the list of firms that either went out of business or filed for bankruptcy, alongside Voyager Digital, Celsius, and BlockFi.
SALT To Regain Trust in Crypto Lending Market
The company is currently in the final stages of undergoing an out-of-court restructuring process that will enable it to continue conducting normal business operations. An official statement regarding this matter is expected to be released soon.
According to Owen, it is crucial to promote transparency and demonstrate a robust reserve to regain the trust of wary customers in the crypto lending. He added that his firm seeks additional funds to establish a surplus.
The company has become more transparent and open in response to a market that is cautious of potential misunderstandings or miscommunications. Owen stated that the market tone is uncertain, with people feeling as if they were taken advantage of or not fully informed of what was happening