Passive Income Plan: why H1 2026 became a record half

The first half of 2026 had a bit of everything.

• Artificial intelligence remained the dominant investment theme, pushing semiconductor manufacturers, memory-chip makers and AI infrastructure companies to fresh highs.
• Geopolitical tensions in the Middle East repeatedly sent oil prices sharply higher before retreating again, and
• Inflation expectations and interest-rate forecasts shifted almost weekly.

Institutional investors often need to borrow securities for market making, settlement, hedging or short-selling activities. When trading activity increases and demand becomes concentrated in a handful of popular stocks, borrowing costs typically rise, creating additional income opportunities for investors willing to lend their holdings.

That is precisely what happened during the first six months of the year. According to DataLend, global securities lending revenues reached $8.8 billion during H1 2026, a 33% increase compared to the same period last year. The second quarter alone generated $5 billion, making it one of the strongest quarters on record.

Much of that demand came from one place: artificial intelligence led volatility, especially across the world’s hottest chip makers.

The AI investment boom continued to dominate global markets throughout the first half of the year. Chipmakers, memory manufacturers and companies supplying AI infrastructure experienced enormous trading volumes, attracting strong interest from investors around the world.

That enthusiasm also translated into securities lending demand.

• Asian equity lending revenues surged 80% year-on-year, largely thanks to semiconductor and memory-related companies, while
• Revenues from EMEA-listed equities climbed 59%, supported by both technology names and Europe's financial sector.

During the first half of 2026, clients participating in the Passive Income Plan collectively earned $2.63 million, representing a remarkable 155% increase compared with the first half of 2025 and the strongest six-month performance since the programme was introduced. The second quarter alone generated $1.57 million in lending income for clients in Switzerland and Luxembourg.

Since the Passive Income Plan was launched in October 2022, participating clients have now earned nearly $7 million in additional income.

These figures illustrate how the Passive Income plan complemented long-term investment strategies without requiring investors to trade more frequently or alter their portfolio allocation.

Inside Swissquote

Since launch, 31’485 Swissquote clients have chosen to participate in the Passive Income Plan.

During H1 2026:

• Clients collectively earned $2.63 million
• 418 clients earned more than $1’000
• 30 clients earned more than $10’000
• 9 clients generated more than $20’000
• One client earned an impressive $254’000 during the first half of the year alone.

Naturally, passive income revenue depends on factors such as

• portfolio size,
• the securities held and
• market demand.

Nonetheless, the figures demonstrate how lending can create an additional source of return alongside potential capital appreciation.

Perhaps unsurprisingly, artificial intelligence featured prominently among the programme's top earners.

• Korean memory-chip giant SK hynix benefited from relentless demand linked to the global AI infrastructure build-out,
• French AI processor developer Kalray and data-centre specialist 2CRSi also ranked among the highest-paying securities.

At the same time, Europe contributed more than just technology companies.

Financial institutions including Partners Group, Swiss Re and Swiss Life also generated substantial lending income, reflecting robust demand across European financial stocks.

The programme's highest income-generating security was Capital B, which generated approximately $281’000 for participating Swissquote clients during H1 alone.

Equities continued to dominate lending activity. During H1 2026, 89% of all loans involved stocks, while ETFs accounted for the remaining 11%.

This reflects the stronger borrowing demand typically associated with individual shares, particularly those experiencing elevated trading activity or limited market availability.

From a geographical perspective, French-listed securities generated the largest amount of passive income for Swissquote clients, followed by Swiss, US, UK and German-listed companies.

Again, that largely reflects where borrowing demand was strongest throughout the first half of the year.

One common misconception is that investors need to choose between benefiting from rising share prices and earning lending income. In reality, the two can complement one another.

Median Technologies, for example, one of the Passive Income Plan's top performers during the first half of the year saw its share price appreciate 124% over the past twelve months. Meanwhile, clients holding the stock generated approximately $159’000 in lending income.

In other words, participating investors benefited from both capital appreciation and an additional passive income stream generated simply by making their shares available for lending.

During the first half of 2026, securities were borrowed by twelve leading international financial institutions, including UBS, Bank of America Merrill Lynch, Barclays, Morgan Stanley, JP Morgan, Citi, BNP Paribas, Zürcher Kantonalbank and Goldman Sachs.

These institutions borrow securities for several reasons.

• Market makers use them to provide liquidity.
• Investment banks may require them for settlement purposes.
• Other institutional investors use borrowed securities to implement hedging strategies or facilitate short-selling.

The content in this article is provided for educational purposes only. It does not constitute investment advice, financial recommendations, or promotional material.