Robinhood Rolling Out Stock Lending Feature

Robinhood Rolling Out Stock Lending Feature

Robinhood users who want to potentially get some extra return from their investment holdings may soon have the opportunity to do just that. This week, the app announced the launch of a new Stock Lending feature. According to a blog post on the company’s site, this option will allow investors to earn passive income by lending out their holdings. When users opt into the program, Robinhood will match up lenders and borrowers. Then, the lending customer will be able to track their earnings and positions in the app. Additionally, they’ll be able to disable the feature at any time. Furthermore, users will still be able to sell shares even if they are on loan. Currently, Stock Lending has begun rolling out to some Robinhood customers, with the app estimating that it should be available to all eligible users by the end of May.

In order for stocks to be eligible for lending, they must be fully paid securities. This means that fractional shares and shares held in accounts with a margin balance will not be able to participate. Robinhood also notes “securities with limited supply have greater potential to be loaned out and the potential to yield greater returns than securities where supply is more liquid.”

Announcing the new feature, Robinhood’s Chief Brokerage Officer Steve Quirk said, “Our version of Stock Lending empowers customers to put their investments to work while keeping it simple. Robinhood does the work of finding borrowers and managing transactions while customers can add a potential source of passive recurring income to their portfolio.” Quirk went on to add, “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.”

The announcement of Stock Lending comes as Robinhood has attempted to grow its platform and diversify revenue following an earnings miss in Q1. Last month, the company announced it was adding support for four more cryptocurrency assets, including the oft-request SHIB. Prior to that, Robinhood also aimed to appease fans by finally rolling out crypto wallets. Elsewhere, the app also recently revealed an overhaul of its former Cash Management account, converting it to a product called Robinhood Cash Card instead.

While the past few months haven’t been the greatest for Robinhood, the company has continued to introduce some interesting ideas. What’s more, although additions such as the recent crypto listing and wallets were things that users had long been asking for, this Stock Lending program seems to be further outside of the box. Of course, it remains to be seen how well the program works or how much customers can realistically expect to profit from the stock lending (not to mention the risks associated). Nevertheless, it’s clear that Robinhood isn’t giving up just yet, making them a continually intriguing company the watch.

Leave a Reply

The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

A Guide to Building Credit and Increasing Your Credit Scores

When it comes to credit, there’s some good news. The average credit score in the United States has been steadily rising in recent years, coming in at 715 in 2023. That may be because, today, consumers not only have more ways to access their credit reports and scores than ever before but also because there are an increasing number of options that Americans have for building credit in the first...

2024 SoFi Checking and Savings Review

Ever since I started taking an interest in the FinTech sector, one company whose name I’ve seen pop up over and over again is SoFi. Lately it seems as though that theme has been sent into overdrive as the company has not only become a household name thanks to its stadium naming rights deal but also because of the company’s continued product expansions. The most interesting development in my mind...
Brim logo

Brim Financial Raises $85 Million as It Eyes Global Expansion

Toronto-based FinTech infrastructure startup Brim Financial has announced a new funding round. About the round: Brim has revealed an $85 million round. The Series C was led by EDC Investments while new investor Vistara Growth and returning investors White Owl Group, Epic Ventures, and Zions Bank also participated. To date, the company has now raised $110 million including a Series B in 2021. According to Brim, the latest funding will...
Chase Freedom Flex card

Chase Reveals Q2 2024 Freedom 5%(+) Bonus Categories

Chase has announced its bonus category picks for the second quarter of 2024 — including some interesting twists. About the categories: As April approaches, Chase has revealed what categories Freedom and Freedom Flex cardholders can earn bonuses on. From April 1st through June 30th, customers can earn 5% (or more) in three categories: Amazon.com, Hotels, and Restaurants. Similar to how Chase embraced a "New Year, New Me" theme last quarter,...
Rent Day

Bilt Announces Home Collection Deal for May 2024 Rent Day

For May's Rent Day, Bilt is offering a deal that will allow members to decrease their rent bill while also adding to their home decor. About the Home Collection offer: Bilt has crafted a unique Rent Day offer for May 2024. Through the 1st, when Bilt members redeem their points toward rent payments, they'll receive the same number of points to be used toward Bilt Home Collection items. To take...