Both let you borrow against Bitcoin without selling, but they handle the two things that matter most, the rate and what happens in a downturn, very differently. Coinbase's loan is a decentralized finance (DeFi) product with a Coinbase front end; SALT is a centralized lender with multi-year terms and a stabilization mechanism instead of a forced sale.
This is an independent comparison, not advice. Coinbase figures are a snapshot because its rate floats; SALT figures are verified weekly.
Dimension
Coinbase (DeFi)
SALT (CeFi)
Model
DeFi (Morpho on Base)
CeFi (a company)
You receive
USDC, a stablecoin
US dollars
Rate
~5 to 6% variable, no ceiling
7.49 to 10.50%, no origination fee
Max LTV
~75% (liquidates at 86%)
70%
Custody
cbBTC in a Morpho market; BTC backing custodied by Coinbase
Lender-held pool, not re-lent
On a margin call
Automatic on-chain, no cure window
Stabilization: converts BTC to USDC (3% fee, plus 2% to convert back)
Funding speed
Near-instant
1 to 2 days
Identity check
Coinbase account
Required
Coinbase data is a snapshot (its rate floats); SALT figures are verified weekly. Neither is a recommendation.
The core difference
SALT holds your Bitcoin in its own pool (it does not re-lend it), lends US dollars at a fixed rate, and offers 1, 3, and 5-year terms. Crucially, an uncured margin call triggers stabilization, not a forced sale: SALT converts your Bitcoin to USDC to lock in its value and leaves the loan in place. Coinbase wraps your Bitcoin to cbBTC, supplies it to a Morpho market on Base, pays USDC, and liquidates automatically on-chain with no cure window. Our CeFi vs DeFi guide covers the broader distinction.
Where they differ
Rate. Coinbase is usually cheaper on the headline number (around 5 to 6 percent, variable, no ceiling) than SALT (around 7.49 to 10.50 percent, fixed, no origination fee). Coinbase's floats; SALT's is locked for the term.
What you receive. SALT pays US dollars. Coinbase pays USDC, a stablecoin you convert yourself.
Downside handling. This is the sharpest contrast. SALT stabilizes (converts to USDC, keeps the loan open) rather than force-selling; Coinbase liquidates automatically at about 86 percent loan-to-value. SALT's stabilization carries a 3 percent fee plus 2 percent to convert back and locks in a downturn price; Coinbase's liquidation is immediate with a penalty around 4.38 percent.
Terms. SALT offers 1, 3, and 5-year fixed terms. Coinbase is open-ended with no fixed maturity.
Speed. Coinbase funds in about a minute; SALT in 1 to 2 days.
Who picks which
Lean SALT if you want US dollars, a fixed rate, long multi-year terms, and a margin-call process that does not force-sell your Bitcoin. Lean Coinbase if you want the lowest available rate and near-instant funding, you are comfortable with USDC and automatic liquidation, and you already hold Bitcoin on Coinbase.
Coinbase's variable rate has recently sat around 5 to 6 percent, below SALT's 7.49 to 10.50 percent. But Coinbase's rate floats with no ceiling and pays USDC, while SALT lends US dollars at a fixed rate with no origination fee and offers 1, 3, and 5-year terms. Compare the all-in cost and what you receive.
How does SALT handle a margin call differently from Coinbase?
Instead of a forced liquidation, SALT stabilizes an uncured margin call by converting your Bitcoin to USDC to lock in its dollar value and leaving the loan open (a 3 percent fee, plus 2 percent to convert back), which caps your upside if Bitcoin recovers. Coinbase liquidates automatically on-chain at about 86 percent LTV with no cure window. They are very different downside experiences.
What is the main difference between Coinbase and SALT?
Coinbase's loan is a DeFi product that wraps your Bitcoin to cbBTC, supplies it to a Morpho market on Base, and pays USDC. SALT is a centralized lender that holds your Bitcoin in its own pool (not re-lent), lends US dollars, and offers multi-year fixed terms with its stabilization mechanism instead of forced liquidation.