Both securities-based lending (SBL) and crypto-collateralized loans let you borrow against an appreciating asset without selling. The structures look similar on paper. The mechanics underneath are very different — and those mechanics determine which one fits your situation.
SBL: the bank version
You pledge equities at a major-bank brokerage. The bank extends a credit line at SOFR + a spread (typically 6–9% in 2026). LTV: 50–70%. Liquidation: gradual, often negotiable. Custody: bank. Tax: pledging is not a sale.
Crypto-collateralized: the on-chain version
You move BTC, ETH, or stablecoins into a smart-contract escrow or custodial account. Rate: 5–9% APR. LTV: 30–60% (lower because crypto volatility is higher). Liquidation: automatic, often non-negotiable. Custody: depends — segregated, rehypothecated, or self-custodial via DeFi.
When to use which
- Stock-heavy net worth, slow-moving spending need → SBL.
- Crypto-heavy net worth, faster liquidity need, comfort with on-chain → crypto-backed.
- Both, with proper structure → use both, on different parts of the balance sheet.
ARCrypto members typically run a hybrid: SBL on equity portfolio, crypto-backed against the digital-asset stack. Book a private call for a structured walk-through.