Velox Clearing Partners with Sharegain to Launch Fully Paid Securities Lending Program

Velox Clearing has selected Sharegain as the lending agent for its upcoming fully paid securities lending (FPSL) program. This partnership allows Velox to provide its institutional and retail-facing clients with a turnkey solution for generating passive income from existing holdings, signaling a continued push for sophisticated yield-generating tools within the mid-market clearing and custody space.

What was announced

Velox Clearing, a technology-driven clearing firm, is integrating Sharegain’s end-to-end securities lending solution to power its new FPSL program. The initiative is designed to serve a broad spectrum of Velox’s client base, including global broker-dealers, Registered Investment Advisors (RIAs), institutional investors, and family offices. By utilizing Sharegain as the lending agent, Velox aims to bypass the traditional hurdles of building a proprietary lending infrastructure, which often involves significant capital expenditure and regulatory complexity.

The program works by allowing underlying investors to lend out securities they already own in exchange for a fee, creating a passive revenue stream. For the financial institutions using Velox’s clearing services, this adds a competitive layer to their own value proposition without requiring them to manage the operational intricacies of the lending market. Sharegain’s platform handles the technical and regulatory requirements of the lending process, enabling Velox to offer these services at scale. This move targets the growing demand for capital efficiency among retail and institutional participants who are increasingly looking for ways to monetize long-term portfolios in a volatile market environment. The partnership specifically focuses on delivering these capabilities to a global audience, ensuring that Velox's international clients can access the same yield-generating opportunities as those in more established domestic markets.

"At Velox, we’re focused on driving financial growth, trust and accessibility for institutions and investors worldwide. Fully paid lending is a clear opportunity to do that, and Sharegain’s best-in-class solution enables us to bring it to market without the cost and complexity of building it in-house."

Zhenxing Tang, CEO of Velox Clearing.

The companies involved

Headquartered in Miami, Florida, Velox Clearing is a correspondent clearing firm that officially entered the market in 2019. The company positions itself as a technology-forward alternative to legacy clearing houses, offering a suite of services that includes securities clearing, settlement, custody, and margin lending. Beyond basic clearing, Velox provides prime brokerage solutions tailored for hedge funds and automated traders, emphasizing a modern tech stack to facilitate faster integration and more flexible operations for its clients. Its public launch in 2019 marked its entry into a competitive field dominated by established players, yet it has carved out a niche by focusing on the needs of modern, automated trading firms and RIAs.

Sharegain, founded in 2015, has established itself as a specialist in the securities lending sector, specifically focusing on retail-facing financial institutions. The firm’s core value proposition is its ability to democratize access to the securities lending market, which was historically the domain of large-scale institutional players. By providing an end-to-end digital solution, Sharegain allows banks, brokers, and wealth managers to launch lending programs in a matter of weeks rather than years. The company operates globally, providing the necessary infrastructure to bridge the gap between retail investors and the global capital markets, ensuring that the benefits of securities lending are accessible to a wider range of market participants.

What this means

The partnership highlights a significant shift in the clearing and custody landscape, where "technology-first" firms are increasingly leveraging third-party fintech specialists to close the feature gap with Tier-1 incumbents. By outsourcing the lending agent role to Sharegain, Velox is effectively commoditizing a complex financial service, putting pressure on traditional clearing firms that rely on proprietary, often opaque, lending desks. This move reflects a broader industry trend toward transparency and accessibility in securities lending. The open question for the sector is whether these automated FPSL programs will become a standard expectation for RIAs and family offices, potentially forcing a margin squeeze on firms that cannot offer similar yield-enhancement tools. As the barrier to entry for launching these programs continues to drop, the competitive advantage for clearing firms will likely shift from basic service provision to the quality of the underlying technology and the speed of integration.