Robinhood lets Brits lend shares for extra income in bid to grow international footprint

Stock trading app Robinhood has launched a new feature in the UK that allows retail traders to lend out stocks they own outright in their portfolio to interested borrowers. Shares lent out via the app will be treated as collateral, with Robinhood receiving interest from borrowers and paying it out monthly to lenders. Share lending is risky as there is a chance that borrowers may default on their obligations and be unable to return the value of the share to the lender. Robinhood aims to grow its market share abroad through this new feature. Other firms in the UK also offer securities lending programs, but Robinhood’s offering provides higher interest to lenders.