Robinhood Launches Stock Lending Program

On Wednesday, Robinhood, a major US commission-free stock trading and investing app, announced the official launch of the Stock Lending program. According to a blog post published by the platform, Robinhood aims to have a ‘democratized approach’ to paid securities lending.

A Robinhood customer can lend out fully paid stocks in their portfolio by enabling Stock Lending. Through Robinhood’s in-app dashboard, customers can track earnings, see their positions and enable or disable Stock Lending at any time.

“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. 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,” Steve Quirk, the Chief Brokerage Officer at Robinhood, commented.

Robinhood highlighted: “Fully paid securities lending is a demand-driven business, meaning that securities with limited supply have greater potential to be loaned out and the potential to yield Yield A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a Read this Term greater returns than securities where supply is more liquid.”

However, Fractional shares, as well as shares held in an account with a margin balance, are not eligible to be loaned out through the Stock Lending program.

Ziglu Acquisition

Last month, Robinhood announced that it had reached an agreement to acquire the London-based fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term app, Ziglu. The acquisition comes in the midst of the platform’s expansion into the UK and Europe, as the plans were halted two years ago.

“Like Robinhood, Ziglu believes that the new era of digital money brings a multitude of opportunities, and Ziglu exists to make those opportunities accessible to everyone. Their talented team and technology will help us accelerate our international expansion, both in the UK and across Europe,” the stock trading and investing app pointed out.