Saxo Bank Securities began offering a stock lending service to its Japanese retail clients today (Tuesday), allowing investors to earn interest on equity holdings without selling their positions, according to the company's announcement.
The firm claims it is the first broker in Japan to offer stock lending for French, German, Swiss, Spanish, and Italian equities. Combined with US listings, the pool covers more than 6,500 stocks and ETFs, the company said.
Saxo Japan added those same European markets to its trading platform only recently, when it expanded its stock offering to include names from Denmark, Italy, Spain, and Switzerland, building out what has become a broader push into continental European equities.
European Equities Drive Japan Debut
Under the service, customers lend their holdings to other market participants who need them, with Saxo Bank Securities acting as intermediary. The company handles all administrative procedures, with interest accruing daily and credited automatically to client accounts each month, the firm said.
Customers retain the right to sell shares at any time during the loan period, and receive an amount equivalent to dividends rather than actual dividend payments , with the dividend substitute treated as miscellaneous income for tax purposes under Japanese law.
- Saxo Bank Risk Governance Head Laura Deleuran Exits After 11 Years for Jyske Bank
- Saxo Bank Fined Nearly $50 Million in Denmark, Its Largest Penalty in Recent Years
As of January 26, roughly 300 US and European stocks in the program carried annualized lending rates of 5% or higher, the company said. Of those, more than 150 are US-listed, a figure Saxo Japan described as favorable compared with major domestic online brokers that already offer US stock lending services.
Stock lending as a retail product has been spreading across multiple markets. eToro rolled out a similar service for UK retail investors as a passive income feature for long-term holders, while flatexDEGIRO introduced stock lending for its three million European customers in a comparable push across the continent.
Credit and Market Risks Apply
The launch fits into a pattern of product additions Saxo Bank has been making across Asia. The firm added standalone margin lending accounts for Singapore clients following an earlier rollout of fractional share trading in that market, and partnered with Trust Bank in Singapore to give retail investors access to US stocks at a $10 entry point.
However, Saxo Japan laid out several risks in its announcement. Because the arrangement is structured as an unsecured consumer loan from the client to the company, investors carry Saxo's credit risk as the borrower. If the firm were to default, lent shares may not be returned, the company disclosed.
Customers also continue to carry market risk throughout the loan period, meaning fluctuations in share prices affect account valuations regardless of whether the stock is currently out on loan. Partial opt-ins are not possible - once a client enrolls, all eligible stocks and ETFs in their account become available for lending. The service can be cancelled at any time, the company said.
Those moves come as Saxo Bank undergoes a change in ownership. J. Safra Sarasin completed its acquisition of Saxo Bank in early March 2026, closing a €1.1 billion deal and installing Daniel Belfer, who brings nearly 30 years of Safra Group experience, as the group's new chief executive.
Wide Range in Lending Rates
The rates themselves can vary sharply, and the company was explicit that market conditions drive all pricing with no guarantee of future availability or returns. A table published by Saxo Japan as of January 26 showed Brand Engagement Network Inc (BNAI) carrying an annualized lending rate of 203.90%, Intelligent Bio Solutions Inc (INBS) at 166.28%, and Ads-Tec Energy PLC (ADSE) at 103.86%.
At the other end of the range, the Direxion Daily Semiconductor Bull 3X ETF (SOXL) carried a rate of just 0.14%. Saxo Japan defines a "high lending rate" stock as any name with a rate of 1% or more. Across its full inventory, the company said 119 stocks exceed 20%, 66 fall between 10% and 20%, and 98 sit between 5% and 10%.
To mark the rollout, Saxo Japan is running a time-limited campaign from today through April 30, 2026. During that window, the company will match whatever standard lending interest a client earns during the period, effectively doubling the payout. The bonus amount will be deposited into trading accounts by May 18, 2026, with no upper limit applied to the total, the firm said.
