About Stock Lending
Our Stock Lending program offers you the ability to earn additional income from the securities you already own. When Stock Lending is enabled, you’ll receive monthly payments if your shares are borrowed.
How does the program work?
After your eligible account is enrolled in the program, your fully paid securities held in your account will be considered for borrowing. These shares are typically loaned to borrowers for short selling or trade settlements. These borrowers pay an interest rate based on current market conditions to your broker, and in turn, you will receive monthly interest payments based on the value of the loaned securities.
An analogy: Think of it like renting out a home you own.
You still own the house, you can move back in, and you can sell it when you choose, but in the meantime, you're earning income. With Stock Lending, your stocks work in a similar way. You maintain ownership and can sell them at any time, while earning extra income as long as they're out on loan.
A few important considerations to keep in mind:
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Enrollment in the program doesn’t guarantee that your eligible securities will be loaned.
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When your shares are on loan, you’ll temporarily forfeit your shareholder voting rights. You can unenroll from the program at any time to restore your voting rights.
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Instead of receiving regular dividend payments, you’ll receive a “payment-in-lieu” which will be a cash payment and may be taxed differently.
To participate in the Stock Lending program, you need to have one of the following:
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At least $20,000 in reported annual income
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At least $20,000 in liquid assets
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At least 1 year of trading experience
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Open Kraken Pro and navigate to your Account tab via Settings.
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If you are eligible, you'll see a toggle option for Stock Lending.
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Turn the toggle on.
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Carefully read the important information provided.
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Click Opt in to confirm.
That's it! You are now enrolled.
To opt out, simply return to the same toggle and switch it off.
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Open the Kraken Pro app and navigate to your Account Settings.
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Tap Kraken Rewards.
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Under Stock Lending, turn the toggle on.
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Carefully read the important information provided. Tap Opt in to confirm.
To opt out, simply return to the same toggle and switch it off.
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Open the Kraken app and go to Account Settings.
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Tap Stock Lending.
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Review the important information and Terms & Conditions on the next screen.
If you agree, tap I would like to opt in. - 4
You’ll then see your on-loan balances (if any).
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You can also view any previous payouts by tapping View Payouts.
To unenroll on the kraken app:
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In the Kraken app, go to Account Settings, then tap Stock lending.
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In the top right of your screen tap the gear symbol.
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Tap Unenroll from stock lending.
These materials are for informational purposes and not investment or financial product advice or a recommendation or solicitation to trade any security. All investing involves risk. Kraken Securities LLC does not provide tax advice. For specific questions about potential tax implications associated with securities lending, consult a tax professional.
Stock Lending is offered by Kraken Securities LLC and facilitated by Alpaca Securities LLC under the Master Securities Lending Agreement. Full risk disclosures are available for review here.
For more information, please contact our Support team.
How does the program work?