Plain English
SBLOC (Securities-Based Line of Credit) is a loan secured by your stock or bond portfolio at a major brokerage. Instead of selling securities to access cash, you borrow against them. Schwab, Fidelity, Goldman, Morgan Stanley all offer SBLOC products to qualified clients.
How it actually works
The brokerage extends a credit line up to a percentage of your portfolio value — typically 50–70% of marginable securities. You draw cash as needed; the borrowed amount accrues interest, usually pegged to SOFR or prime plus a spread. If your portfolio drops in value, you face a margin call: deposit more collateral or get securities sold. SBLOCs typically charge 4–8% APR for HNW clients.
What it means for you
For HNW members, SBLOC is the traditional wealth-management version of the strategy we teach on-chain. Same logic: borrow against appreciated assets instead of selling, avoid triggering capital gains, fund lifestyle from the loan. The on-chain version (crypto-collateralized loans) extends the playbook to digital assets.
Our Crypto-Collateralized Lending pillar contrasts SBLOC versus on-chain alternatives: rate comparisons, liquidation mechanics, tax treatment, and which structure fits which kind of capital.
Educational content only. Not investment, tax, or legal advice.