Securities Lending Market Volume Expected to Reach $21,499.9 Million by 2034 at CAGR of 5.7% | Allied Market Research

The rise in demand for short selling from hedge funds coupled with the growth of passive investing among individual investors further drives fintech driven collateral management innovation which is propelling the global securities lending market during the forecast period.

WILMINGTON, Del., April 23, 2026 /PRNewswire/ — The global securities lending market size was valued at $12,157.3 million in 2024, and is projected to reach $21,499.9 million by 2034, growing at a CAGR of 5.7% from 2025 to 2034. The rise in demand for short selling from hedge funds coupled with the growth of passive investing among individual investors further drives fintech driven collateral management innovation which is propelling the global securities lending market during the forecast period.

Market Size & Growth

The securities lending market has proven stable and resilient for more than a decade and is now an essential part of modern institutional portfolio management. A base year valuation of USD 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.

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In terms of absolute value, the securities lending market is poised to expand by nearly 9.34 billion US dollars during the 2025–2034 forecast period from a total of USD 12.16 billion in FY2024 to USD 21.50 billion by 2034. The 5.7% 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 LAMEA. 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.

Report Quick-Reference Data 

Key Market Insights

Key Findings from the Report:• The global securities lending market is analyzed in details and these are some of the Key findings shaping up this market, according to Allied Market Research report.

Equities ~74% Largest Contributor to Total Revenue: The largest segment of total securities lending market revenue at just under three quarters in 2024, highlighting the essential nature of stock lending in generating short-selling and arbitrage alpha from hedge funds or trading desks.

Borrower concentration: In 2024 hedge-funds generated 86% of borrower-side revenue, demonstrating their continued role as a leading consumer of borrowed securities for long/short equity and market neutral strategies.

Regional Leader: North America had the highest share of regional revenue at 41% in 2024 powered by equity capital markets that are deeper than anywhere else in the world, a mature hedge fund industry as well as an advanced post-trade infrastructure.

Top Growth is in the LAMEA region and Africa to be specific this area is expected to grow further fastest at a CAGR of 8.9% till 2034, largely due fintech-enabled lending platforms & emerging market capital infrastructural development.

Retail Brokers: The retail brokers borrow segment is predicted to be the fastest growing during the forecast period, as digital platforms open up securities lending programs to wealth managers and smaller brokerages.

And, for the most part, no tech: Blockchain-enabled real-time settlement; AI-driven predictive analytics; and automated collateral management systems are among today primary operational transformation drivers in the securities lending market.

Market Segmentation

On the basis of type, securities lending market is segmented into Equities, Government Bonds, Corporate Bonds and Others Equities dominate the $55 billion segment, generating a 74% revenue share in 2024 due to high ongoing demand for stock borrowing by short-selling strategies, equity arbitrage programs, 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 programs beyond core equity holdings, so corporate bonds and other securities are an increasingly large share of the market for securities lending.

(Source: DataLens/ Equi Lend) By Borrower the hedge funds segment accounted for 86% 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 programs to improve risk-adjusted returns. Retail brokers grow 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 commercialized market for securities lending.

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Regional Insights

The U.S. and Canada are the largest region in the securities lending market, accounting for 41% of global revenue as per 2024. It is 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 & AI that lowers costs and further enhances settlement efficiency and transparency. The influence of technology–particularly, AI-enabled collateral optimization and real-time risk analytics–is keeping North America competitive at the forefront of the securities lending market.

Europe ranks second in security lending market region, and it is defined by the execution of the Securities Financing Transactions Regulation (SFTR), harmonized 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, namely 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 GPIF has the largest loan programs in the region, while Japan is a leader here one; receiving large pools of funds from Japan’s Government Pension Investment Fund (GPIF) and South Korea, Hong Kong, Taiwan and Singapore are already known lending hubs. As capital market liberalization takes place, China also offers the largest long-term growth opportunity and Singapore’s business-friendly regulatory environment has already drawn global custodians and innovators in fintech to build Asia-Pacific securities lending market solutions starting with Citi launching Caliber Securities Lending Account (CSLA) series of solutions in partnership with Maybank Securities in December 2024.

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% from 2025 to 2034 CAGR for securities lending markets as growth over rest of developing world (>8%) 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. The care market in Brazil and the developed JSE lending programs in South Africa also play a role in developing LAMEA’s securities lending market.

Key Players

The competitive environment of the securities lending market are being shaped by global custodian banks, prime brokers and specialist intermediaries. The report includes players such as 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 SIXX Group Services Ltd Invesco Ltd StoneX Group Inc the Bank of New York Mellon Corporation

To grow their positions in the global securities lending markets, these institutions are pursuing a variety of strategies from launching new digital platforms and fintech partnerships to geographic expansion and product innovation. For institutional lending programs, State Street Corporation and The Bank of New York Mellon dominate custodian agents around the world. The securities lending market demand leader the hedge fund borrower community is served by two of the largest prime brokers in JPMorgan Chase and Goldman Sachs. Meanwhile, Clearstream has positioned itself as a technology innovator and Deutsche Bank is experimenting with blockchain-based tokenized asset servicing through Singapore’s Project Guardian initiative.

Key Recent Industry Developments

Key milestones: January 2025 – The launch of Clearstream Lending Analytics Dashboard showed lenders an overview covering applicable lending activity across all accounts and products in a holistic, data-driven manner. With customizable KPI reports and benchmarking tools, the tool represents a major step towards greater operational transparency in securities lending globally.

December 2024: Maybank-Citi CSLA Platform launched in Asia Maybank Securities announced the launch of the Citi Securities Lending Access (CSLA) platform for retail investors in Singapore, in collaboration with CitiThe launch allows clients to lend global equity holdings and earn borrower fees. This was the first deployment of the platform in Asia and is considered a big step in democratizing access to the securities lending market for retail participants.

May 2024 Camecho – Deutsche Bank joined Singapore’s Monetary Authority of Singapore (MAS) cross-industry project on Mar. Bank is conducting trials of a distributed ledger platform to service tokenized and digital funds, heralding the start of a significant technology investment in future settlement Asian market infrastructure for the securities lending community.

April 2023 Strategic Alliance between JPMorgan & Sha regain: J. P. Morgan, a global leader in financial services, partnered with fintech firm Sha regain to expand its agency securities lending capabilities by utilizing SL Tech (digital platform), which is sought out for wealth managers and online brokers across 30 markets helping clients lend stocks, bonds and ETFs while simplifying costs from operational complexity in the securities lending market.

November 2023 CSE Introduces SBL & RSS in Sri Lanka: Colombo Stock Exchange has also launched Stock Borrowing and Lending (SBL) and Regulated Short Selling (RSS) formalizing a securities lending market infrastructure for Sri Lanka while expanding the geographic serviceable reach of the global securities lending ecosystem.

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