Alpaca Tokenized Stock Infrastructure Gets $135M Boost

What is Alpaca Markets and why does its latest funding round matter for tokenized stocks? 

On 16 July 2026, the San Mateo based brokerage infrastructure firm announced a $135 million equity raise led by Peak XV, with participation from Elefund, Opera Tech Ventures (BNP Paribas Group), and Unbound. 

Including debt financing from Payward (the parent company of Kraken) and BMO, the total financing package reached $435 million. 

The round signals growing institutional conviction that tokenized equities are moving beyond pilot stage into production grade infrastructure.

Key Takeaways

• Alpaca Markets raised $135 million in equity on 16 July 2026, bringing total financing (including debt from Kraken's parent Payward and BMO) to $435 million.
• The company custodies or clears roughly 94% of all tokenized U.S. equities, with over $1.5 billion in underlying stocks backing the tokens.
• Alpaca Markets is a FINRA registered brokerage infrastructure provider and is entirely separate from Alpaca Finance, a DeFi lending protocol on BNB Chain.

What Is Alpaca Markets?

Alpaca Markets, operated by AlpacaDB Inc., is an API first brokerage platform founded in 2015 by Yoshi Yokokawa, a former Lehman Brothers executive. 

Rather than serving retail traders directly through an app, Alpaca provides the backend infrastructure that allows fintechs, crypto exchanges, and financial institutions to offer U.S. stock trading through their own platforms. 

Its brokerage subsidiary, Alpaca Securities LLC, is registered with FINRA and SIPC.

Image Source: Alpaca Markets

The company has grown rapidly in the tokenized equity space. Major tokenisation platforms including Backed (xStocks, owned by Kraken's parent), Ondo Global Markets, Robinhood, and Binance's bStocks all rely on Alpaca for custody and clearing of the real shares that sit behind their tokens. 

As of mid 2026, Alpaca supports over 10 million brokerage accounts across more than 40 countries and has doubled revenue year over year for three consecutive years.

The January 2026 Series D of $150 million valued the company at $1.15 billion. 

Since then, Alpaca acquired WealthKernel in the UK (completing regulatory passporting across all 30 EEA countries) and Zincmoney in India's GIFT City, establishing a global regulated footprint that few competitors in the tokenised stock space can match.

Read also: Trade Tokenized Stock, Earn an APR of up to 7%

How Are Tokenized Stocks Backed?

One of the most common questions around tokenised equities is whether there are real shares behind them. 

In Alpaca's model, the answer is yes. For every tokenised stock issued through its infrastructure, the corresponding real shares are purchased and held in regulated custody by Alpaca Securities. 

The company reported over $1.5 billion in assets under custody specifically for the stocks backing tokenised equities as of July 2026.

This is known as the equity backed spot token model. When a user buys a tokenised share of Apple or NVIDIA through a platform powered by Alpaca, a real share of that stock is purchased and custodied on a one to one basis. 

Corporate actions like dividends, stock splits, and voting rights are processed by the regulated custodian and passed through to token holders according to each platform's structure.

Not all tokenised stock products work this way. Perpetual futures contracts, which are offered on exchanges like Bitrue through their TradFi platform, track stock prices via oracle feeds without any underlying share held. 

These are synthetic derivatives that let traders speculate on price movements with leverage, settled in USDT. Both models serve different purposes: spot tokens prioritise ownership exposure, while perpetual futures prioritise trading flexibility and around the clock access.

On 15 July 2026, Alpaca participated in the DTCC's first live tokenised asset trades, a milestone that brought tokenised equities into contact with traditional settlement infrastructure for the first time at production scale.

Read also: Corporate Actions in Tokenized Stocks: A Complete Guide

What Is the Difference Between Alpaca Markets and Alpaca Finance?

Despite sharing a name, these are completely unrelated projects. Alpaca Markets (AlpacaDB Inc.) is a U.S. regulated brokerage infrastructure company focused on traditional equities and tokenised stock custody. 

Alpaca Finance is a decentralised finance protocol on BNB Chain that offers leveraged yield farming and lending services. It has its own token, ALPACA, which trades on crypto exchanges.

The confusion arises because both operate in spaces adjacent to crypto. However, Alpaca Markets does not have a native token and does not operate on any blockchain directly. 

Its role is purely as a backend infrastructure provider for platforms that do issue tokens. Alpaca Finance, by contrast, is entirely DeFi native and has no involvement in traditional equities or brokerage services.

For investors researching either project, the distinction matters. Buying the ALPACA token on a crypto exchange gives you exposure to the DeFi lending protocol, not to the brokerage company that just raised $435 million and custodies $1.5 billion in real stocks. 

Conflating the two could lead to misallocated capital and misunderstood risk profiles.

What Risks Should Investors Consider With Tokenized Stocks?

Tokenised equities are growing fast, but the infrastructure is still maturing. Regulatory frameworks vary significantly across jurisdictions, and the rules governing tokenised securities could change as agencies like the SEC and CFTC develop new guidance. 

Platforms and issuers operating in this space may face compliance challenges that could affect product availability or trading conditions.

Counterparty risk is another consideration. Even with custodied backing, the chain of custody between the real share, the custodian, the issuer, and the trading platform introduces multiple points of potential failure. 

If any link in that chain encounters financial difficulty or operational disruption, token holders could face delays or complications in accessing their underlying exposure.

Liquidity differences also matter. Tokenised stock markets are smaller than traditional equity markets, which means wider spreads and thinner order books in some cases. 

For perpetual futures contracts, funding rates and liquidation mechanics add another layer of complexity that traders need to manage actively.

Read alsp: How to Trade Tokenized Stocks with 0% Trading Fees

Conclusion

Alpaca Markets' $135 million raise reinforces the momentum behind tokenised stock infrastructure as it moves from experimental to institutional scale. With over $1.5 billion in custodied assets, regulatory licences across the U.S., Europe, and India, and participation in the DTCC's first live tokenised trades, Alpaca is building the plumbing that connects traditional equities to blockchain based platforms. 

For traders who want to access tokenised U.S. stock exposure through perpetual futures settled in USDT, Bitrue's TradFi platform offers a straightforward entry point with 24/7 trading, competitive leverage, and a growing selection of tokenised assets. 

The tokenised equity market is still early, but the infrastructure behind it is no longer theoretical.

FAQ

What is Alpaca Markets?

Alpaca Markets is a FINRA registered, API first brokerage infrastructure company that provides custody, clearing, and trading technology for fintechs and institutions offering U.S. equities.

How much did Alpaca raise in July 2026?

Alpaca raised $135 million in equity led by Peak XV, with total financing reaching $435 million when including debt from Kraken's parent Payward and BMO.

Is Alpaca Markets the same as Alpaca Finance?

No. Alpaca Markets is a regulated U.S. brokerage infrastructure provider. Alpaca Finance is a separate DeFi lending protocol on BNB Chain with its own ALPACA token.

Are tokenized stocks backed by real shares?

In Alpaca's model, yes. Real shares are purchased and held in regulated custody on a one to one basis for every tokenised equity issued through its infrastructure.

What are the risks of tokenized stocks?

Key risks include regulatory uncertainty, counterparty risk across the custody chain, and lower liquidity compared to traditional equity markets.

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