Robinhood Markets Inc has launched a fully-paid securities lending program.
The program lets the online broker’s users lend out shares they own through the app to market participants and passively collect a cut of the fees.
The move is part of Robinhood’s efforts to diversify its income away from transactional revenue.
The new program will potentially bring in 1-to-2 times the revenue that Robinhood’s margin securities lending program generates, the company’s Chief Executive Officer, Jason Warnick, said on a call with analysts last week.
To qualify for the fully-paid lending program, Robinhood users must have $5,000 in total account value, at least $25,000 in reported income or some trading experience.