finance

Fidelity Investments has their own asset lending program called the Fully Paid Lending Program (FPLP). Fidelity's statement on collateralization provides more confidence than Robinhood's statement.

Fidelity says the loans are collateralized whereas Robinhood says they "aim" to have loans that are collateralized.

Fidelity
> The collateral will be equal to at least 100% of the value of the shares on loan.

Robinhood
> ...we aim to hold cash equal to a minimum of 100% of the value of your loaned stocks at a third-party bank.
> In some circumstances, the collateral held on your behalf may not equal or exceed the value of loaned securities.

https://www.fidelity.com/trading/fully-paid-lending

I'm realizing every major brokerage has an asset lending program that is overcollateralized with cash. 

- Charles Schwab: https://www.schwab.com/securities-lending
- E*Trade: https://us.etrade.com/what-we-offer/our-accounts/fully-paid-lending

I learned from Schwab that these stock lending programs only apply to small and midsize stocks.

Larger stocks tend to not have an oversupply of people who want to short it (Agree to buy at a lower price) that creates the need to borrow the stock.

A random walk down @safe ❇️ and open source tech research

https://farcaster.xyz/adamhurwitz.eth/0x82e4237c