eToro Partners with BNY to Launch Fully-Paid Stock Lending for European Users

eToro has introduced a fully-paid stock lending programme in partnership with BNY, offering European users a new way to generate passive income from their investment portfolios. The move marks an expansion of eToro’s existing clearing relationship with BNY, leveraging the bank’s global infrastructure to bring institutional-grade services to retail investors.

Under the arrangement, BNY will act as custodian for the lent stocks, while EquiLend Spire will manage borrower identification and coordinate the lending process. The initiative is part of eToro’s broader strategy to enhance its investment platform with new tools that create income opportunities and support market liquidity.

“Stock lending has traditionally been the preserve of large financial institutions”

Yossi Brandes, Vice President of Execution Services at eToro, commented, “Stock lending has traditionally been the preserve of large financial institutions, and it’s been much harder for retail investors to earn passive income in this way. Yet it is an important practice that helps to support liquidity in financial markets.”

The stock lending feature will launch gradually to members of the eToro Club, beginning with Platinum, Platinum+, and Diamond tiers. Lower-tier club members will gain access at a later date. Once opted in, users will allow their entire portfolio of real, whole-unit stock positions to be considered for lending. Contracts for difference (CFDs) and fractional shares are excluded, with eligible shares rounded down to the nearest whole share.

Users whose stocks are successfully lent will receive monthly income statements tracking their earnings for each relevant period. According to eToro, stocks with low market liquidity, high demand, and volatility are more likely to be borrowed, potentially generating higher returns. All loaned securities will be backed by collateral.

The new stock lending programme is built on eToro’s existing clearing arrangement with BNY, which includes services such as global clearing, custody, settlement, execution, and financing. The structure supports eToro’s real stock and ETF offerings across 19 international exchanges.

Brandes added, “Since the inception of our relationship, BNY has enabled us to expand our offering of investment opportunities through their global clearing and custody services, which provide the financial structure for our global, fully funded stock and ETF offerings across 19 exchanges. This new collaboration marks a significant step in our commitment to adding features and products to the platform that enrich the investing experience and help users to grow their knowledge and wealth.”

By integrating fully-paid stock lending into its platform, eToro opens the door for everyday investors to participate in a revenue-generating mechanism that has traditionally been limited to institutional players, further democratizing access to financial markets.