Brokerage platform Alpaca announced it’s launched a fully paid securities lending (FPSL) program for US equities through its broker API for passive yield, creating new revenue.
Brokerage platforms are increasingly focused on diversifying their revenue streams and reducing reliance on traditional trading activity, driving increased demand for products like FPSL.
“Because investors can potentially earn additional yield by simply holding onto their assets, FPSL creates a strong financial incentive to keep portfolios at your brokerage over the long term. This may make customers more likely to consolidate accounts or transfer assets from other platforms, knowing they can potentially earn passive income with no extra effort,” Alpaca wrote in a statement.