The Clap
Robinhood plans to roll out a new feature allowing its users to loan out their stocks to other financial institutions.
Huh?
It’s not a new thing. In fact, it’s already got a name: fully paid securities lending. It is the process that enables short sellers to borrow securities and execute their short sales, allowing users to earn passive income by loaning stocks they own.
The bigger picture
Securities lending is just one feature Robinhood plans to roll out in its effort to become a full-service financial platform. The commission-free trading app is working on a spending-account service, a cash-spending card, & a feature facilitating the investment of spare change.
