Financial services firm Robinhood Markets Inc.’s feature allowing customers to lend out equities to other financial institutions has entered the beta version, according to a Bloomberg report.
The feature popped up in a beta version of the Robinhood iPhone application, as discovered by developer Steve Moser. The service was dubbed as the Stock Loan Income Program or SLIP.
The feature explanation notes that users will be able to earn passive income by loaning out whole shares of stocks to other institutions, which may borrow to settle trades, or for them to make short sales.
The development will not be covered by the Securities Investor Protection Corp. or SIPC and will not allow voting on proposals for companies. The holdings will be secured by cash collateral held by Robinhood.
Plans to offer such a feature were announced by Chief Executive Officer Vlad Tenev in January, with representative Rouky Diallo this week saying it is still on track to be released to the public by the first half of the year.
The latest feature will have to compete with those already in the market offered by Fidelity Investments, Morgan Stanley’s E*Trade, and Charles Schwab Corp.