Saxo Bank Japan Starts Stock Lending, Claims First-in-Market Status for Five European Countries

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.

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.

This article was written by Damian Chmiel at www.financemagnates.com.



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