Alpaca and Binance revenue partnership details made public
A revenue-sharing agreement between Binance and Alpaca has been revealed, covering order-flow payments and stock-lending proceeds as Binance moves into US equities and tokenized stock offerings.
A revenue-sharing agreement between Binance and Alpaca, a custodian and brokerage infrastructure API provider, has been made public. Alpaca has emerged as a significant infrastructure provider in the custody space for tokenized US stocks and exchange-traded funds (ETFs).
According to Binance Securities Trading Terms that were published on Tuesday, the arrangement stipulates that Binance will collect 50% of Alpaca's payment-for-order-flow fees and 65% of the remaining profit generated from user stock lending once users have been paid their interest. The terms confirm that Binance will receive 50% of Alpaca's payment-for-order-flow, commonly known as PFOF, fees and 65% of stock lending profits after the platform compensates users with interest payments.
For Binance's stock trading product, Alpaca supplies brokerage, clearing and custody infrastructure and also serves as a leading infrastructure provider for tokenized US stocks and ETFs. In January, the company successfully raised $150 million at a valuation of $1.15 billion for its brokerage infrastructure operations.
The public disclosure reveals how Binance plans to generate revenue from its expansion beyond cryptocurrency after it rolled out access to over 7,000 US-listed stocks and ETFs and offered a preview of its upcoming tokenized stock product known as bStocks.
Cointelegraph reached out to Binance for comment regarding the arrangement and inquired about whether the company maintains a minority stake in Alpaca.
According to Alpaca, the company had $480 million in assets under custody (AUC) as of December 2025, representing a 29% market share of the current $1.62 billion total value of tokenized stocks, based on data from provider RWA.xyz.
The overall value of tokenized stocks increased by approximately 29% over the past 30 days, while the number of holders grew 35% to reach 304,700. Nevertheless, monthly active addresses dropped by more than 77%, falling to 31,877, which indicates that investors are choosing to hold rather than actively trade these assets.
Cryptocurrency exchanges broaden offerings to include tokenized US stocks
Additional major cryptocurrency exchanges are similarly broadening their offerings to incorporate US stocks and ETFs, addressing the increasing investor appetite for more accessible blockchain-based trading products.
In April, cryptocurrency exchange Bitget introduced a proxy offering connected to the pre-initial public offering (IPO) phase of SpaceX, Elon Musk's aerospace manufacturing and space transportation company, as Cointelegraph reported at the time.
Binance similarly introduced a SpaceX-linked pre-IPO futures product connected to the anticipated valuation of the company prior to its public listing, according to a Cointelegraph report on May 21.
In January, Bitpanda, a Vienna-based crypto exchange, announced it was broadening its offering to encompass approximately 10,000 stocks and ETFs.
In April 2025, Kraken introduced 11,000 US-listed stocks and ETFs featuring commission-free trading in an initiative to bring "equities and digital assets together" within a single trading platform, forming part of a "phased national rollout."