The IPO Pipeline and the Next Phase of Securities Lending Demand

Among recent examples, CoreWeave (CRWV) stands out as a defining case. Following its 2025 listing, the stock generated substantial securities lending revenues, with approximately $759 million recorded in the last twelve months. Demand to borrow the stock intensified around key corporate events, including lock-up expirations, with borrowing fees rising sharply during periods of limited availability and strong investor positioning. This dynamic highlights how IPOs with limited free float and concentrated investor ownership can generate elevated fee environments, even if these conditions prove temporary.

A similar, albeit less pronounced, effect has been observed in other IPOs such as Circle Internet Group Inc (CRCL), along with additional new listings linked to digital assets, technology infrastructure, and energy transition themes. Market data indicates that several recent IPOs, including CoreWeave and Circle, ranked among the top U.S. equities by securities lending revenue during 2025, reflecting concentrated demand for short exposure or hedging activity. This clustering of revenue around a limited number of newly listed securities has reinforced the importance of event-driven opportunities in supporting lending income.

In parallel, Asia-Pacific markets have emerged as a significant driver of global securities lending revenues since the beginning of the year. Recent data shows that APAC equity lending has outpaced North America in recent months, with the region leading global equity lending revenue in April 2026 and May whilst recording strong year-on-year growth. This shift has been supported by a combination of new listings, corporate actions and concentrated activity in a narrow set of high-demand names. Historical trends also indicate that APAC equity revenues increased materially during 2025, with new listings and “specials¹” playing a central role in revenue generation. Year to date specials revenues across the APAC region hit $982.6M in May, marking a 73% increase year-on-year and their highest level since specials activity tracking data commenced in 2010.

Against this backdrop, upcoming IPOs in the United States may influence the regional balance of securities lending activity. The anticipated listings of SpaceX, OpenAI and have been described in market commentary as potentially among the largest in recent history, with combined valuations potentially exceeding several trillion dollars. While precise market outcomes remain uncertain, the structural characteristics of these offerings, large market capitalizations coupled with relatively limited initial free float, suggest the potential for heightened borrowing demand and elevated lending fees.

The SpaceX IPO, in particular, illustrates the broader market implications of such listings. With an expected valuation approaching $1.7–2 trillion and a relatively small proportion of shares available for trading initially, the stock may create imbalances between supply and demand in the secondary market. In securities lending terms, this type of structure can contribute to high utilization levels and elevated borrowing costs, especially in the early stages following listing. At the same time, the timing and scale of demand are likely to be influenced by investor positioning, derivatives activity, and the pace at which additional shares enter circulation.

The impact of the SpaceX IPO also extends beyond single-name lending dynamics into broader market infrastructure. Index providers have already adjusted or reviewed their inclusion methodologies in response to mega-cap IPOs, with some frameworks enabling faster entry into major indices such as the Nasdaq-100. These changes have implications for index management services, where tracking index eligibility, rebalancing schedules and corporate actions become increasingly important. Earlier or accelerated inclusion can drive mechanical demand from passive funds, which in turn may influence securities lending activity through increased borrow demand around index rebalancing events.

Similarly, exchange-traded funds (ETFs) are expected to play a role in shaping demand patterns around these IPOs. Large index-tracking funds are required to replicate benchmark constituents, and the addition of a high-value stock such as SpaceX can lead to substantial reallocation of capital into the name. Data and insights derived from ETF datasets are particularly relevant in this context, as ETF flows often act as a transmission mechanism between index changes and securities lending demand. Where fund inflows coincide with constrained share availability, lending fees may increase as borrowers seek to source inventory.

Looking ahead, the anticipated listings of OpenAI and Anthropic introduce an additional dimension to the IPO pipeline. Both companies are associated with high-growth segments of the technology sector and are expected to come to market at significant valuations, with Anthropic alone potentially approaching $1 trillion. The scale and sector alignment of these IPOs may contribute to sustained demand for hedging, arbitrage and directional positioning strategies, all of which are relevant drivers of securities lending activity.

Taken together, these developments point toward a continuation of IPO-driven revenue opportunities within the securities lending market. While lending revenues have already reached elevated levels in recent periods, supported in part by APAC activity, the re-emergence of large-scale U.S. IPOs may shift attention back toward the Americas. If borrowing demand around these listings proves sustained, and if supply constraints persist in the early stages of trading, there is potential for these names to contribute meaningfully to overall lending revenues.

Although outcomes remain dependent on market conditions, investor behavior and issuance structures, the current pipeline suggests that IPOs could remain a key factor in determining whether the industry approaches another record year for securities lending revenues.

_{1 Specials activity is classed as any stock with a lending fee greater than 500bps.}