eToro is launching a stock lending program in the UK and Europe, giving eligible users the opportunity to earn passive income by lending out their fully owned stock holdings. The initiative, developed in partnership with BNY as custodian and EquiLend as platform provider, brings retail investors access to a previously institutional-dominated investment strategy.
A Scalable Model for Stock Lending
The program applies to whole-unit stock positions only—excluding CFDs and fractional shares—and will initially be rolled out to members of the eToro Club, starting with the Platinum tier. Eligible users can opt in to have their portfolios assessed for lending opportunities. Once enrolled, eToro handles the lending process and provides monthly income statements to users when shares are successfully loaned.
Stock lending allows borrowers—typically institutional investors—to temporarily use the shares, during which the original owner loses voting rights but retains the right to receive dividends and exit the program at any time without penalty.
According to eToro, the most in-demand stocks—those with low liquidity and high volatility—are likely to generate the highest returns. All loaned assets will be backed by collateral, and the program provides access to over 19 global stock exchanges.
Enhancing Access to Passive Income
This move is part of eToro’s broader push to democratize financial tools typically reserved for professional investors. Yossi Brandes, VP of Execution Services at eToro, noted that the initiative aims to “level the playing field” by offering retail clients access to a feature that supports liquidity and generates additional returns.
EquiLend’s Dan Dougherty emphasized the role of cutting-edge technology in powering the program, while BNY’s Victor O’Laughlen underlined the initiative’s integration with global clearing, settlement, and custody infrastructure.
The program is designed to be transparent and user-friendly, reflecting eToro’s continued commitment to providing modern financial services that empower its growing retail base across Europe.
