Securities Lending Market Expected to Reach $21,499.9 Million by 2034

According to a new report published by Allied Market Research, titled, “Securities Lending Market," The securities lending market size was valued at $12,157.3 million in 2024, and is estimated to reach $21,499.9 million by 2034, growing at a CAGR of 5.7% from 2025 to 2034.

Securities lending is a crucial but often overlooked component of financial markets, where securities are temporarily transferred in exchange for collateral. This process boosts market liquidity and facilitates strategies such as short selling and arbitrage, significantly contributing to overall market efficiency. One of the key securities lending market trends liquidity needs in volatile markets to increase in the need for robust liquidity strategies. stock lending and equity lending offer institutional investors added flexibility, enabling income generation and swift portfolio adjustments. As central banks navigate inflation and interest rates, demand for short-selling is growing, making securities lending a key tool for hedging and seizing market opportunities. In addition, there is a growing trend in the adoption of fintech platforms, democratizing securities lending by enabling retail participation through managed funds and pooled investments. This shift is boosting market liquidity and efficiency. Furthermore, securities lending empowers everyday investors to stay active without liquidating assets. By earning lending fees, they can reinvest in new opportunities or offset trading costs, enhancing overall portfolio efficiency. 

Moreover, securities lending market is expected to witness significant growth through automation. Technologies such as Robotic Process Automation (RPA) and AI are replacing manual workflows, streamlining tasks like trade matching, settlement, and collateral management. These tools enhance speed, reduce errors, and uncover real-time lending opportunities, boosting both efficiency and risk control. In addition, the increase in use of big data and analytics is transforming securities lending. Firms are leveraging advanced tools to assess market trends, borrower risk, and optimize fees, enabling smarter, more profitable decisions. Analytics also enhance collateral management by evaluating asset quality and volatility, helping mitigate risk and boost returns. Furthermore, the surge in the adoption of blockchain technology in securities lending helps to enhance transparency, reduce fraud, and streamline record-keeping, thus propelling the securities lending market growth. Smart contracts further automate key processes like collateral transfers and agreement execution, minimizing disputes and building trust through secure, self-executing transactions. This is expected to offer remunerative opportunities for the growth of the securities lending market.

In the context of the evolving securities lending market outlook, cloud-based platforms are being integrated to support scalable, real-time data access and cross-platform collaboration, allowing firms to operate more flexibly in dynamic markets. In addition, machine learning models are being utilized to predict borrower behavior and lending demand, enabling proactive strategies. These innovations collectively contribute to a more agile, transparent, and resilient securities lending ecosystem. Moreover, cloud-based platforms and machine learning models facilitate seamless integration with external systems, reduce infrastructure costs, and support advanced analytics and scenario modeling. This empowers firms to swiftly adapt to regulatory changes, market volatility, and client demands, ultimately improving competitiveness and operational performance in a fast-paced financial environment. In addition, cloud-based platforms and machine learning models technologies enable more accurate performance forecasting, assist in stress testing, and support compliance monitoring by providing real-time insights and alerts. With increasing volumes of transactional data, automation and AI enhance scalability while reducing operational risk. As a result, firms can focus on strategic decision-making, innovation, and delivering greater value to clients through improved service quality and speed. 

On the basis of borrower, the global securities market share was dominated by the hedge funds segment in 2024 and is expected to maintain its dominance in the upcoming years, owing to rise of fintech platforms allowing retail investors to participate in these markets, leading to increase in market liquidity and competition. In addition, the government's regulations aimed at enhancing transparency, reducing counterparty risk, and improving market stability have further supported the development of non-traditional securities lending, driving the growth of the market in the segment. However, the retail brokers segment is expected to experience the highest growth during the securities lending market forecast period. This segment is experiencing increase in the adoption of securities lending programs to boost revenue and offer more value to clients by earning fees from lending client-held stocks and sharing some of the income with investors. 

By region, North America dominated the securities lending market share in 2024 for the securities lending market. This is due to the adoption of technologies such as blockchain, artificial intelligence (AI), and automation enhancing operational efficiency, reducing settlement times, and improving transparency, contributing significantly to the region’s market growth. However, LAMEA is expected to experience the fastest growth during the forecast period. The region is experiencing a growing trend of fintech platforms offering easier access to securities lending. These platforms facilitate peer-to-peer lending, allowing smaller investors to participate in securities lending activities, which is expected to provide lucrative growth opportunities for the market in this region. 

Key findings of the study  

• By Type, the equites segment held the largest share in the securities lending market for 2024.   

• By Borrower, the hedge funds segment held the largest share in the securities lending market for 2024.  

• Region-wise, North America held the largest market share in 2024. However, LAMEA is expected to witness the highest CAGR during the forecast period.  

The key players profiled in the securities lending market analysis include BNP Paribas, State Street Corporation, JPMorgan Chase & Co, Goldman Sachs Group, UBS, The Charles Schwab Corporation, ClearStream, Deutsche Bank AG, Societe Generale, Mizuho Securities Co., Ltd., Royal Bank of Canada, SIX Group Services Ltd., Invesco Ltd, StoneX Group Inc, and The Bank of New York Mellon Corporation. These players have adopted various strategies to strengthen their position in the securities lending industry.