>> Announcer: Live from Nassau. (electronic music) Live from Nassau in The Bahamas, it's The Cube, covering Polygon '18, brought to you by Polymath. >> Welcome back, everyone. It's The Cube's exclusive coverage live in The Bahamas for Polycon '18. This is where all the action is, cryptocurrency, Bitcoin, blockchain, you name it, token economics, a paradigm shift of epic proportions. This is a decentralized internet. It's impacting the world. Missions, technology, applications, and all sectors. Our next guest, Shawn Owen, CEO of SALT Lending, serial entrepreneur, killer idea, so simple, so stupid simple. No one's doing it, he's doing it, lending cash for Bitcoin and currency. Welcome to The Cube. >> Thank you, it's good to be here. >> You know, there's two things that I love, the crazy ideas that everyone says is the dumbest idea on the planet that becomes billion-dollar opportunities, then something that's so simple and obvious that no one does because either a bag at your dogma or other interests. You're in kind of both. You got the simple idea, lending. Take a minute to talk about SALT Lending and your innovation that you guys do on the business side. >> Yeah, you got it. Everybody here at these conferences, or hopefully, people that are watching, have some interest in cryptocurrencies or blockchain, and probably accumulate some value in that currency, or the asset class. Once you do, then you have options, that you can either continue to hold that, or you can sell it. We're opening up a new market for the ability to see that as property and borrow against it. In fact, the technology makes a perfect form of collateral. We have all this ability to program in smart contracts. You can write in the rules. You can make it highly secure, yet nobody is doing it, so it's one of these simple things that, as this market emerges, became kind of obvious as a pain point, which is, I go to the bank, and I show them my personal financial statement, and they look at Bitcoin, and scratch their head. Somebody's got to bridge that gap, so we're building technology that ultimately should be used by banks or financial institutions to bring this together to where you have that ability like you would with any other type of property. If you look at any other type of property, you can lend against it, somebody's figured out how to, whether it's minerals, whether it's land, whether it's cars. Really now, we're doing that for cryptocurrency. SALT Lending stands for secured automated lending technology, so it's very much a technology-driven company, yet it's foundational in lending. It's just very simple to understand because it's the oldest business known to man. >> We covered cloud computing from day one. It's interesting, automation wins the day. We're seeing a lot of things where automating M&A process, we talked to those guys at LEXIT. You're doing something here with lending. You're just so simple. Here's the question, if I have Bitcoin, and there's a lot of whales walking around here, people, billionaires, millionaires, a lot of people have made money over the past couple of years. Certainly, if you were in it 2011 after, you're a whale. They got value. I put it up, and I get cash? Is that how it works? >> That's right. Everybody has assets that they want to hold onto, that are precious to them, whether it be gold, heirlooms, art, Bitcoin. Then they have currencies that are things that they want to spend quickly and/or just don't even think twice about it, I'll pay for a cup of coffee, a bottle of water, whatever. As the world moves into the blockchain era, as all value can be recorded on distributed ledgers in blockchains, you have this new way of thinking about everything. You can imagine a wallet where you have all the things you really care about, and you can dynamically decide what your currency is based off where you're traveling, where you want to spend, what you think is happening with inflation, depending on what your interest is. Maybe it's video game points you want to spend in the future. However, having that scale, and saying, at any point in time, I want to hold onto this, and I want to spend more of that, there's a partnership, right? A really easy way to think about that is, how can I leverage what I have, which is portfolio lending, or any type of lending, into more of the currencies I need, whether it's, I need to go buy a house, I need to buy a car, I want to buy more investments? We see it as a very powerful tool, and almost a necessity, but then, on top of that, just extremely cool in how you could imagine the future of finance in this world. >> Yeah, it's a total game-changer. I love what you're doing. I think, getting the fiat conversion really gets immediate liquidity in a currency that people can spend. If someone says, "Hey, I don't want Bitcoin," great, I want to buy a boat, or start a business, I need to get some fiat, I pledge up my coin. >> That's right. >> Now, you go valuation issues, so I'm assuming you have math behind this that says, "Hmm, but if Bitcoin drops..." >> Yep, that's the thing. We really solve a couple fundamental pieces of the blockchain that, at its core, are difficult for people to do well. One is security, and the other is user interface. When you wrap that into a product, and you build out the user interface and the security, suddenly, it becomes a lot easier. When it comes to the risk mitigation, it's simply over-collatoralized. We're going to pitch you as a borrower, and say, "You're already probably storing all this "somewhere anyway, in a wallet. "Why not put it in a secure wallet, "drive the loan to value ratio way down "so you're only borrowing what you need "when you need it, you don't bring out "these giant loans for no good reason, "you just borrow what you need, "the interest rate becomes a lot lower, "and then you have extra collateral for the volatility?" Ideally, that's the scenario. If, in a world where it's very volatile, and you're at a higher loan value rate, then that's where we give you options. We say, "Hey, would you like to sell some of this, "or would you like to add more? "Would you like to prepay your loan if not?" There's always the option for somebody to correct the loan instrument, but that's the other really cool part about a smart contract, or a smart written language around the instrument itself, is that you can get a little more creative. Instead of just having legal paperwork, you can say, "Let's put this into the code." It becomes very dynamic in the ability for it to cure, the instrument itself, to stay course. >> Software money, I love this. Let's go down, talk about the token that you have, SALT Token, and that's for the borrower, or the lender? >> It's, right now, the borrower, although it will expand into all uses. It's effectively, as people say, it's powering the network, or it's the gasoline behind it. It's our internal currency. It acts as a store value in the regards of how you would think about a serial number. If I have Microsoft Office, and you buy a serial number, that's the key that lets you in, and it tells you how much of the product you have. If you have 20 or 30 of them, you can give them to your employees, or you could redeem it for some other value. We just think that tokens actually do a better job of that recording 'cause it's now put on a permanent ledger. You have the permanent auditability of it, than just a serial number in a private database. >> I think you got a great solution because the alternative to not having it is essentially, get a liquid on an exchange, which some people might not want to do. Then also, where do you do it, right? There's all kinds of dynamics on the exchange side. Here, I'm saying, I'm long on Bitcoin, but I need to get some working capital for whatever the project is, so you're there. Is there any competition? Is anyone else doing this? >> There's no competition yet. There's definitely some people that are out there saying that they are, and I would be careful. Some of them may be legitimate. We've seen a few that are scams, so always be protected, and be wary. >> John: Give an example of what a scam would look like for the people. >> A scam would be somebody who says, "Hey, we're doing an ICO," and you start looking at it, and it looks exactly like what we've built, except for they're, maybe, in Russia, and you can't actually contact the people, and they don't have any banks behind them, or any kind of regulatory framework. >> They're spoofing your brand. >> Yeah, we've seen a lot of that. We've had a lot of phishing attempts, and people trying to spoof the idea or the site, and that's a little worrisome, but there probably will be competitors. It's a big market. >> Yeah, that's going to happen more and more, more of those spear phishing attacks too. Great, and outlook for you guys. Where are you guys at with the company? Talk about what your needs are. You hiring? What's going on with the operation? >> Yeah, we're constantly hiring, looking for anybody who's got great financial background and wants to be in the blockchain space, and/or developers, constantly looking for blockchain-focused developers, people that either want to learn the space, or already know the space, either way is fine. We'd love to talk to you. We've issued $30 million in loans in the states we're approved. We're rapidly expanding that genre of where we can lend. We're working to partner with banks, so if you're a bank, or you're a financial institution, there's a lot of capital money at this conference, we'd love to talk to all you guys because there's an opportunity for us to give you an indirect exposure into the market. >> It's good for the big whales who have a lot of currency, a lot of value, to pay it forward in the mission, in the community. They could be lenders too, right? >> Very much so, yes. >> Wow, so what states aren't you in? 30 million, that's a good number. What's your top list? >> The next on the list that we're working towards, we're really close to Texas, we're really close to California, really close to New York, really close to Utah. Those are some big ones. Lots of interest in Puerto Rico, so we're heavily focused on getting there, and it's just a road map, a heat map. There's a lot of interest in Europe, so we're going over into Europe, lots in Canada. >> Shawn, thanks for coming on, sharing the project, your success. Love your idea, again. Disruption continues. The stampede is coming behind us at Polycon. That's their logo. Polymath is the company behind this event. Of course, we're The Cube, we're independent, we're bringing you all the action here at Polycon '18. More live coverage after this short break. (electronic music)