A securities-backed loan is a loan backed by publicly traded securities such as stocks or bonds as collateral. A borrower deposits securities into an escrow account, and then, the borrower is able to receive a loan usually in the amount from 50% to 95% of the pledged securities’ market value. An available credit limit depends on the specific securities in the portfolio and the level of diversification. For example, in traditional finance, usually a borrower who pledges a portfolio of U.S. Treasury notes can receive more funds than a borrower who pledges a portfolio of a single, concentrated stock position.