Banks and credit unions are racing to adopt Bitcoin, according to SALT Lending CEO Shawn Owen, who says institutional fear of missing out is real. In an interview with Grace Remington and Sean Hagan, Owen discusses Bitcoin as “pristine collateral,” the potential to compress volatility, and why institutions can no longer ignore the asset. The framing reflects a broader shift in which Bitcoin is being evaluated not just as a holding, but as an asset that banks, credit unions, and wealth are weighing for lending and client-facing roles.

Owen explains how barriers that previously held back banks and registered investment advisers have come down. The conversation examines the direction of Bitcoin-backed lending and the factors shaping institutional participation. It also covers Bitcoin’s role as collateral, loan-to-value considerations, and the potential development of a secondary market for Bitcoin-backed loans. SALT operates in crypto-collateralized lending, a sector built around letting holders access liquidity without selling their coins — a theme the interview returns to in its closing chapter on when borrowing may make more sense than selling.

The interview, published by Bitcoin Magazine, includes the following chapters:

• 0:00 – SALT Lending CEO Shawn Owen on Bitcoin Volatility and Loan-to-Value
• 1:38 – Bitcoin as Pristine Collateral for Banks and Wealth Advisors
• 3:20 – Why Credit Unions and Banks Have Bitcoin FOMO
• 4:38 – Dampening Volatility and Bitcoin’s Long-Term Upside
• 6:16 – Bitcoin vs. Real Estate for Younger Generations
• 7:21 – Building a Secondary Market for Bitcoin-Backed Loans
• 8:56 – Bitcoin Regulation, the Clarity Act and Stablecoins
• 10:31 – Bitcoin Strength as Bonds and Gold Sell Off
• 13:11 – How Bitcoin ETFs Changed SALT’s Borrower Base
• 15:40 – Never Sell Your Bitcoin: When to Borrow Instead

The discussion also addresses Bitcoin regulation, the Clarity Act, stablecoins, Bitcoin’s performance as bonds and gold sell off, how Bitcoin ETFs changed SALT’s borrower base, and circumstances in which borrowers may consider borrowing rather than selling Bitcoin. The Clarity Act reference points to U.S. legislation aimed at establishing clearer regulatory boundaries for digital assets, delineating oversight between market regulators and securities regulators — a development relevant to banks and lenders, since custody, lending, and accounting treatment of digital assets depend on regulatory clarity. The ETF discussion, meanwhile, reflects the landscape created by the January 2024 launch of U.S. spot Bitcoin exchange-traded funds, which gave investors exchange-listed exposure to Bitcoin and broadened the pool of potential borrowers.

For readers tracking institutional adoption, the interview surfaces two threads likely to shape the next phase: whether a liquid secondary market for Bitcoin-backed loans develops, giving lenders a way to manage such exposures, and how U.S. digital asset legislation progresses. Both bear directly on how readily traditional financial institutions incorporate Bitcoin into credit products.

Disclaimer: The views and opinions expressed in this show are those of the participants and do not necessarily reflect the official policy or position of BTC Inc., Bitcoin Magazine, or any affiliated entities. This content is provided for informational and educational purposes only and should not be construed as investment, legal, tax, or accounting advice. Nothing contained in this show constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or financial instruments. Viewers should consult their own advisors before making financial or business decisions.

This post first appeared on Bitcoin Magazine and was written by Patrick Green.