Securities lending market volume expected to reach US$21,499m by 2034
24 April 2026 US
Image: rudall30/stock.adobe.com
According to Allied Market Research, the global securities lending market size was valued at US$12,157.3 million in 2024, and is projected to reach US$21,499.9 million by 2034, growing at a compound annual growth rate (CAGR) of 5.7 per cent from 2025 to 2034.
According to the research, rising hedge fund short selling and growing passive investing are driving fintech innovation in collateral management, boosting the global securities lending market.
A base year valuation of US$12.16 billion in 2024 reflects marketplace recovery, whereby advances in settlement efficiency across the stack through technology, increases in institutional participation over the back half of the market cycle, and increased adoption of agency lending to large pension funds, insurance companies, and sovereign wealth funds support a larger market as it grows towards historical norms.
The research also highlights that, in terms of absolute value, the securities lending market is poised to expand by nearly US$9.34 billion during the 2025–34 forecast period from a total of US$12.16 billion in fiscal year 2024 to US$21.50 billion by 2034.
The 5.7 per cent CAGR captures the evolving structural growth of the market, supported by sustainable demand for equity and fixed income lending in both developed western markets and fast-growing capital structures in the Asia Pacific region and Latin America, Middle East, and Africa.
The research further highlighted that growth in alternative assets comprised of private credit instruments, digital securities, and real estate investment trusts (REITs) should provide new lending opportunities as well as diversification to the revenue base of the securities lending market through the forecast period.
Regarding absolute value, the securities lending market is poised to expand by nearly 9.34 billion US dollars during the 2025–34 forecast period from a total of US$12.16 billion in 2024 to US$21.50 billion by 2034.
Growth in alternative assets comprised of private credit instruments, digital securities, and REITs should provide new lending opportunities as well as diversification to the revenue base of the securities lending market through the forecast period.
On the basis of type, securities lending market is segmented into equities, government bonds, corporate bonds, and others equities dominate the US$55 billion segment, generating a 74 per cent revenue share in 2024 due to high ongoing demand for stock borrowing by short-selling strategies, equity arbitrage programmes, and dividend capture efforts.
The second type is the largest segment government bonds; sovereign debt lending backs repo markets and is vital in central bank liquidity operations worldwide.
Institutional investors broaden their lending programmes beyond core equity holdings, so corporate bonds and other securities are an increasingly large share of the market for securities lending.
By borrower, the hedge funds segment accounted for 86 per cent of borrower revenue from the securities lending market in 2024, reflecting its increased reliance on borrowed securities to fund long/short strategies, quantitative trading approaches and event-driven arbitrage measures.
Being both lenders and borrowers, large asset managers and pension funds participate in lending programmes to improve risk-adjusted returns.
Retail brokers grew the fastest of borrowing segments through creating fee-sharing arrangements whereby broker-dealers use their digital platforms to offer securities lending services to retail and wealth management client bases that aim to enhance client engagement and platform revenue in the commercialised market for securities lending.
The US and Canada are the largest region in the securities lending market, accounting for 41 per cent of global revenue as per 2024, powered by the largest series of liquid capital markets in both equity and fixed income in the world, the densest hedge fund and institutional asset manager population in the world and superior post-trade infrastructure based on blockchain and AI that lowers costs and further enhances settlement efficiency and transparency.
The influence of technology — particularly, AI-enabled collateral optimisation and real-time risk analytics — is keeping North America competitive at the forefront of the securities lending market.
Europe ranks second in the securities lending market region, and it is defined by the execution of the Securities Financing Transactions Regulation (SFTR), harmonised reporting, and enhanced market transparency.
The UK is Europe's leading center for cross-border intermediation of securities lending, whilst Germany, France, and the Nordic countries have already established themselves through pools of institutional investors and networks of custodian agents.
Two of the three main markets— Germany and France — benefit more from the presence of sizable sovereign wealth fund as well as pension fund activity supplying consistent lendable assets to enhance liquidity within Europe's securities lending market.
Asia Pacific continues to be an ever-more crucial growth area for securities lending business.
The Government Pension Investment Fund (GPIF) has the largest loan programs in the region, while Japan is a leader here one; receiving large pools of funds from Japan's GPIF and South Korea, Hong Kong, Taiwan, and Singapore are already known lending hubs.
The geographies with the fastest-growing market outside of North America and Western Europe are Geographies where name done hath began, which include LAMEA region with Africa at 8.9 per cent from 2025 to 2034 CAGR for securities lending markets as growth over rest of developing world (>8 per cent) expected over this period.
The growth is fueled by the emergence of fintech-enabled peer-to-peer lending platforms, expanding institutional asset bases, and capital market development programs throughout the Gulf Cooperation Council (GCC) particularly in Saudi Arabia and the UAE.
According to the research, rising hedge fund short selling and growing passive investing are driving fintech innovation in collateral management, boosting the global securities lending market.
A base year valuation of US$12.16 billion in 2024 reflects marketplace recovery, whereby advances in settlement efficiency across the stack through technology, increases in institutional participation over the back half of the market cycle, and increased adoption of agency lending to large pension funds, insurance companies, and sovereign wealth funds support a larger market as it grows towards historical norms.
The research also highlights that, in terms of absolute value, the securities lending market is poised to expand by nearly US$9.34 billion during the 2025–34 forecast period from a total of US$12.16 billion in fiscal year 2024 to US$21.50 billion by 2034.
The 5.7 per cent CAGR captures the evolving structural growth of the market, supported by sustainable demand for equity and fixed income lending in both developed western markets and fast-growing capital structures in the Asia Pacific region and Latin America, Middle East, and Africa.
The research further highlighted that growth in alternative assets comprised of private credit instruments, digital securities, and real estate investment trusts (REITs) should provide new lending opportunities as well as diversification to the revenue base of the securities lending market through the forecast period.
Regarding absolute value, the securities lending market is poised to expand by nearly 9.34 billion US dollars during the 2025–34 forecast period from a total of US$12.16 billion in 2024 to US$21.50 billion by 2034.
Growth in alternative assets comprised of private credit instruments, digital securities, and REITs should provide new lending opportunities as well as diversification to the revenue base of the securities lending market through the forecast period.
On the basis of type, securities lending market is segmented into equities, government bonds, corporate bonds, and others equities dominate the US$55 billion segment, generating a 74 per cent revenue share in 2024 due to high ongoing demand for stock borrowing by short-selling strategies, equity arbitrage programmes, and dividend capture efforts.
The second type is the largest segment government bonds; sovereign debt lending backs repo markets and is vital in central bank liquidity operations worldwide.
Institutional investors broaden their lending programmes beyond core equity holdings, so corporate bonds and other securities are an increasingly large share of the market for securities lending.
By borrower, the hedge funds segment accounted for 86 per cent of borrower revenue from the securities lending market in 2024, reflecting its increased reliance on borrowed securities to fund long/short strategies, quantitative trading approaches and event-driven arbitrage measures.
Being both lenders and borrowers, large asset managers and pension funds participate in lending programmes to improve risk-adjusted returns.
Retail brokers grew the fastest of borrowing segments through creating fee-sharing arrangements whereby broker-dealers use their digital platforms to offer securities lending services to retail and wealth management client bases that aim to enhance client engagement and platform revenue in the commercialised market for securities lending.
The US and Canada are the largest region in the securities lending market, accounting for 41 per cent of global revenue as per 2024, powered by the largest series of liquid capital markets in both equity and fixed income in the world, the densest hedge fund and institutional asset manager population in the world and superior post-trade infrastructure based on blockchain and AI that lowers costs and further enhances settlement efficiency and transparency.
The influence of technology — particularly, AI-enabled collateral optimisation and real-time risk analytics — is keeping North America competitive at the forefront of the securities lending market.
Europe ranks second in the securities lending market region, and it is defined by the execution of the Securities Financing Transactions Regulation (SFTR), harmonised reporting, and enhanced market transparency.
The UK is Europe's leading center for cross-border intermediation of securities lending, whilst Germany, France, and the Nordic countries have already established themselves through pools of institutional investors and networks of custodian agents.
Two of the three main markets— Germany and France — benefit more from the presence of sizable sovereign wealth fund as well as pension fund activity supplying consistent lendable assets to enhance liquidity within Europe's securities lending market.
Asia Pacific continues to be an ever-more crucial growth area for securities lending business.
The Government Pension Investment Fund (GPIF) has the largest loan programs in the region, while Japan is a leader here one; receiving large pools of funds from Japan's GPIF and South Korea, Hong Kong, Taiwan, and Singapore are already known lending hubs.
The geographies with the fastest-growing market outside of North America and Western Europe are Geographies where name done hath began, which include LAMEA region with Africa at 8.9 per cent from 2025 to 2034 CAGR for securities lending markets as growth over rest of developing world (>8 per cent) expected over this period.
The growth is fueled by the emergence of fintech-enabled peer-to-peer lending platforms, expanding institutional asset bases, and capital market development programs throughout the Gulf Cooperation Council (GCC) particularly in Saudi Arabia and the UAE.
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