Robinhood announced its launching a securities lending feature, called Stock Lending, which gives the retail broker permission to lend out any fully paid stocks in a client’s portfolio. Capital at risk and eligibility criteria apply to this product.
Once shares are loaned out, customers can easily track earnings, see their positions, and enable or disable Stock Lending at any time. Participating stocks are backed by cash collateral at a third party bank for added protection
“Stock Lending is another innovative way for our customers in the UK to put their investments to work and earn passive income,” said Jordan Sinclair, president of Robinhood UK, in a statement. “We’re excited to continue to give retail customers greater access to the financial system, with the product now available in our intuitive mobile app.”