Alpaca launches securities lending programme for US equities
19 May 2025 US
Image: Alpaca
Alpaca has launched its Fully Paid Securities Lending (FPSL) programme for US equities through its Broker API.
This new service will enable Alpaca’s customers to lend securities they fully own to institutions such as prime brokers, which borrow shares to facilitate short selling, market making, or hedging purposes.
In return, the borrowing institution pays a fee, which is split between the broker and the clients, enabling both parties to earn passive income from otherwise idle assets.
According to Alpaca, FPSL provides a relatively low-risk, passive income stream, allowing brokerages to earn a share of the interest paid by borrowers when a client’s stock is lent out.
When scaled across tens of thousands of accounts, particularly those holding in-demand securities, this can help generate meaningful income, the firm adds.
Yoshi Yokokawa, co-founder and CEO of Alpaca, comments: “We are incredibly excited and proud of our FPSL programme, which will help partners deliver new yield opportunities in a secure, compliant, and seamless way.
“This launch represents just the beginning of what we believe is a major opportunity for brokers to transform how customers engage with their portfolios.”
This new service will enable Alpaca’s customers to lend securities they fully own to institutions such as prime brokers, which borrow shares to facilitate short selling, market making, or hedging purposes.
In return, the borrowing institution pays a fee, which is split between the broker and the clients, enabling both parties to earn passive income from otherwise idle assets.
According to Alpaca, FPSL provides a relatively low-risk, passive income stream, allowing brokerages to earn a share of the interest paid by borrowers when a client’s stock is lent out.
When scaled across tens of thousands of accounts, particularly those holding in-demand securities, this can help generate meaningful income, the firm adds.
Yoshi Yokokawa, co-founder and CEO of Alpaca, comments: “We are incredibly excited and proud of our FPSL programme, which will help partners deliver new yield opportunities in a secure, compliant, and seamless way.
“This launch represents just the beginning of what we believe is a major opportunity for brokers to transform how customers engage with their portfolios.”
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