By Sam Boughedda

Investing.com — Robinhood Markets (NASDAQ:) introduced Wednesday in a weblog submit that it’s going to allow inventory lending on its platform.

The corporate will roll out the function, permitting customers to lend shares to debtors Robinhood finds.

“Our model of Inventory Lending empowers prospects to place their investments to work whereas holding it easy,” mentioned Steve Quirk, Chief Brokerage Officer at Robinhood.

“Robinhood does the work of discovering debtors and managing transactions whereas prospects can add a possible supply of passive recurring earnings to their portfolio,” Quirk added.

Robinhood customers can allow the dealer to lend out totally paid shares of their portfolio, Robinhood will then discover debtors, and its prospects will receives a commission when there’s a match.

The function is predicted to be accessible to prospects by the tip of Might.

Nevertheless, the corporate warned that there are dangers, and inventory lending is not for everybody.

“There’s a danger that Robinhood Securities might default on its obligations to you underneath the Inventory Lending Program and fail to return the securities it has borrowed. If Robinhood Securities defaults and is unable to return loaned securities, you won’t be able to commerce such securities as ordinary,” the brokerage acknowledged.

Robinhood inventory is up 3.5% Wednesday.