Robinhood launches stock lending program in push for revenue diversification
“We’re excited to break down yet another barrier and democratize a product that has been historically preserved for the wealthy with high barriers to entry,” said Steve Quirk, Chief Brokerage Officer at Robinhood
By Arghyadeep Dutta
Published - May 04, 2022, 11:42 PM ET
Last Updated - Feb 27, 2024, 06:47 AM EST
• Institutional investors and other brokerages borrow stocks to settle trades or facilitate short sales
• Brokerage expects to earn between $137 million $275 million in a year from Stock Lending
Robinhood Markets Inc (NASDAQ: HOOD) on Wednesday launched Stock Lending, a fully-paid securities offering program, which will let users lend out shares they own through the platform to other market participants and passively collect a cut of the fees.
“We’re excited to break down yet another barrier and democratize a product that has been historically preserved for the wealthy with high barriers to entry,” said Steve Quirk, Chief Brokerage Officer at Robinhood.
