Bitcoin Loan Comparison

SALT vs. Coinbase

SALT charges 7.49%–10.5% APR with $0 origination fees using custodial. Coinbase charges a variable 5.1%+ APR with a 1%–2% processing fee using custodial (cbBTC on Morpho / Base). See the full breakdown of rates, thresholds, and custody risk below.

Terms checked individually — SALT: 2026-09-29; Coinbase: 2026-08-28.

How do SALT and Coinbase compare for Bitcoin-backed loans?

For the standardized $250,000, 50% LTV, 12-month scenario, SALT is 8.75% APR and Coinbase is 5.1%+ variable APR. SALT: 50% LTV · 1-year term. Because at least one price is variable or account-tier dependent, the comparison is an estimate rather than a rate winner.

Coinbase charges a processing fee of 2% on the first $250K drawn (1% above) that is added to the loan principal and itself accrues interest — a fee that raises the effective cost above the headline rate from the day you borrow.

SALT vs. Coinbase: Feature-by-Feature Comparison

SALT

Coinbase

Interest Rate (APR)

8.75%

5.1%+ variable

Pricing Basis

Starting LTV and term

Flat rate

Fees / Charges

$0SALT

2% processing fee

Max Starting LTV

70%

75%Coinbase

Margin Call Threshold

83.33% LTVSALT

None — direct liquidation

Liquidation Threshold

90.91% LTVSALT

86% LTV

Margin Call Window

48 hoursSALT

No margin-call window

Custody Model

Custodial

Custodial (cbBTC on Morpho / Base)

Rehypothecation

Interest Payment

Monthly

Capitalized

Minimum Loan

$1,000

NoneCoinbase

Cost on a $250,000 Loan: SALT vs. Coinbase

To keep the comparison clean, both lenders are modeled at $250,000 principal, 50% starting LTV, and a 12-month term, using monthly-pay pricing where available. SALT pricing varies by starting ltv and term; Coinbase pricing varies by account. Actual offers can differ when those inputs change.

Loan Size	SALT APR	Coinbase APR	SALT Total Year-1 Cost	Coinbase Total Year-1 Cost	Savings
$250,000	8.75%	5.1%+ variable	$21,875	$18,341	Estimate only

Assumptions: $250,000 principal, 50% starting LTV, 12-month term, and monthly-pay pricing where offered. Total year-1 cost includes annualized interest and fees, but does not add a fee again when the lender's published APR already includes it. Coinbase: 2% processing fee. Variable or account-tier pricing remains an estimate and is not awarded a winner. Terms checked individually — SALT: 2026-09-29; Coinbase: 2026-08-28.

Custody and Collateral Security

Both SALT and Coinbase use similar custody approaches: custodial and custodial (cbBTC on Morpho / Base) respectively. SALT uses custodial. Your Bitcoin depends on the security and solvency of that custody arrangement and could be at risk in the event of a hack, insolvency, or regulatory action. Coinbase uses custodial (cbBTC on Morpho / Base). Your Bitcoin depends on the security and solvency of that custody arrangement and could be at risk in the event of a hack, insolvency, or regulatory action.

SALT: High (Custodial)

•Custodial
•Rehypothecation: No
•Monthly interest payments
•Standard rates vary by starting LTV and term, not loan size.

Coinbase: High (Custodial)

•Custodial (cbBTC on Morpho / Base)
•Rehypothecation: No
•Interest capitalized (compounding)
•Low headline rate, but a processing fee — 2% on the first $250K borrowed, 1% above — is added to your principal on every draw and itself accrues interest.

Margin Call and Liquidation: SALT vs. Coinbase

SALT triggers margin calls at 83.33% LTV and liquidates at 90.91% LTV. Coinbase has no mandatory margin-call step; positions liquidate automatically at 86% LTV. SALT gives borrowers 48 hours to respond to a margin call. Coinbase has no mandatory margin-call step.

Threshold	SALT	Coinbase
Max Starting LTV	70%	75%
Margin Call	83.33% LTV	None — direct liquidation
Margin Call Window	48 hours	No margin-call window
Liquidation	90.91% LTV	86% LTV

Safety Buffer at Each Lender's Maximum Starting LTV

This comparison uses each lender's own maximum starting LTV, not a common 50% starting position. SALT: 20.9 percentage point modeled buffer between maximum starting LTV (70%) and liquidation (90.91% LTV). Coinbase: 11.0 percentage point modeled buffer between maximum starting LTV (75%) and liquidation (86% LTV). SALT provides a wider safety margin.

Which is better: SALT or Coinbase?

Choosing between SALT and Coinbase requires evaluating total cost, custody risk, and which platform aligns with your borrowing profile. SALT uses custodial with 7.49%–10.5% APR, while Coinbase uses custodial (cbBTC on Morpho / Base) with 5.1%+ (variable) APR.

The standardized table shows a first-year estimate, but at least one lender still prices by a variable rate or account tier. Treat the dollar totals as scenario estimates, not a definitive cheaper-lender ranking.

Both platforms use similar custody approaches. SALT operates via custodial, and Coinbase uses custodial (cbBTC on Morpho / Base). Neither platform rehypothecates borrower collateral.

SALT is the better fit for borrowers who need smaller loans or instant access. Coinbase is the better fit for borrowers who need smaller loans or more flexible access.

Key details to be aware of: SALT: Standard rates vary by starting LTV and term, not loan size. Published one-year APRs are 7. Coinbase: Low headline rate, but a processing fee — 2% on the first $250K borrowed, 1% above — is added to your principal on every draw and itself accrues interest. The rate is variable, set by Morpho market utilization, and has spiked above 8% (Aug 2025).

Frequently Asked Questions

Is SALT or Coinbase cheaper for a $250,000 Bitcoin-backed loan?

The standardized $250,000, 50% LTV, 12-month estimate is $21,875 for SALT and $18,341 for Coinbase. Because at least one rate is variable or account-tier dependent, this is not a definitive cheaper-lender ranking.

How does SALT's custody model compare to Coinbase?

SALT uses custodial. Coinbase uses custodial (cbBTC on Morpho / Base). Both platforms present similar custody risk profiles.

What is the minimum loan amount at SALT vs Coinbase?

SALT's minimum loan is $1,000. Coinbase has no published minimum. Coinbase is more accessible for smaller borrowers.

What happens if Bitcoin drops while I have a loan with SALT or Coinbase?

SALT issues a margin call at 83.33% LTV with a 48-hour response window and liquidates at 90.91% LTV. Coinbase has no formal margin-call threshold and liquidates automatically at 86% LTV. For a common 50% starting LTV (rather than each lender's maximum), the modeled buffers are 41 points at SALT and 36 points at Coinbase.

Should I use SALT or Coinbase for a Bitcoin-backed loan?

It depends on your priorities. SALT (7.49%–10.5% APR, custodial, min $1,000) is better for borrowers who value custodial and need smaller loan access. Coinbase (5.1%+ (variable) APR, custodial (cbBTC on Morpho / Base), no minimum) is better for borrowers who value custodial (cbBTC on Morpho / Base) and need smaller loan access. Use the rate table and cost comparison above to model your specific scenario.

Other comparisons

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Understand the key terms

Rehypothecation Discreet Log Contracts Custodial vs. Non-Custodial LTV Ratio Margin Call Counterparty Risk

See loan scenarios

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