Binance Revenue Deal With Alpaca Disclosed

Binance and Alpaca logos connected by arrows, with dollar signs and handshake icons on a blue digital background

Binance Discloses Revenue-Sharing Agreement With Alpaca – Exchange Expands Monetization of Tokenized Stock Trading

Key Takeaways

Binance disclosed a revenue-sharing agreement with brokerage infrastructure provider Alpaca in its Securities Trading Terms.
The exchange will receive 50% of Alpaca’s payment-for-order-flow fees and 65% of profits from user stock lending after interest is paid to users.
Alpaca provides brokerage, clearing, and custody infrastructure for Binance’s stock trading product and tokenized US stocks and ETFs.
Alpaca held $480 million in assets under custody as of December 2025, representing a 29% share of the $1.62 billion tokenized stock market.

Binance Details Revenue Split in Securities Trading Terms

Binance has published details of a revenue-sharing arrangement with Alpaca, a brokerage and custody infrastructure provider that supports the exchange’s stock trading services. The disclosure appears in Binance’s Securities Trading Terms and outlines how revenues linked to stock trading activity are divided between the two companies.

Under the agreement, Binance will receive 50% of Alpaca’s payment-for-order-flow fees. In addition, Binance will receive 65% of the remaining profit generated from user stock lending after interest payments have been made to users.

Payment-for-order-flow, often abbreviated as PFOF, refers to fees that trading venues receive for directing customer orders to specific market makers or liquidity providers. Stock lending, by contrast, involves lending out user-held securities and sharing interest income. According to the disclosed terms, users are paid interest first, and Binance then receives 65% of the remaining profit generated through Alpaca’s stock lending operations.

The document provides a clearer picture of how Binance may generate revenue from its stock and tokenized equity offerings, beyond standard trading fees.

Alpaca’s Role in Tokenized US Stocks and ETFs

Alpaca acts as a brokerage, clearing, and custody infrastructure provider for Binance’s stock trading product. The company is also described as a major infrastructure provider in the custody of tokenized US stocks and exchange-traded funds.

As of December 2025, Alpaca held $480 million in assets under custody. According to data cited from RWA.xyz, this represents approximately 29% of the total $1.62 billion market value of tokenized stocks.

The broader tokenized stock market has shown notable changes in recent weeks. The total value of tokenized stocks increased by around 29% over the past 30 days. The number of holders rose by 35% to 304,700. At the same time, monthly active addresses declined by more than 77% to 31,877. This data indicates that while overall market value and holder counts have grown, active trading activity has decreased, suggesting that many participants are holding rather than frequently transacting.

Alpaca raised $150 million in January at a valuation of $1.15 billion for its brokerage infrastructure. The funding and custody figures position the company as a significant infrastructure player in the tokenized equity segment.

Binance Expands Beyond Crypto Into Equity Access

The revenue-sharing disclosure comes as Binance continues to expand its offering beyond traditional cryptocurrency trading. The exchange has launched access to more than 7,000 US-listed stocks and ETFs. It has also previewed a tokenized stock product called bStocks, which is expected to further integrate equity exposure into its platform.

By combining brokerage infrastructure from Alpaca with its own trading interface, Binance is positioning itself to offer both crypto assets and tokenized representations of traditional financial instruments within a single ecosystem. The revenue-sharing terms indicate that equity-related activity may become a structured income stream for the exchange.

Cointelegraph reported that it contacted Binance for comment on the arrangement and asked whether the exchange holds a minority stake in Alpaca. No further details were included in the published report.

Other Exchanges Introduce US Stock and ETF Trading

Binance is not alone in expanding into tokenized or blockchain-based stock offerings. Other cryptocurrency exchanges have introduced products that connect users to US equities and related instruments.

In April, Bitget launched a proxy offering tied to the pre-initial public offering phase of SpaceX. Binance also introduced a SpaceX-linked pre-IPO futures product tied to the expected valuation of the company ahead of a potential public listing.

In January, Vienna-based exchange Bitpanda announced it was expanding its product range to include approximately 10,000 stocks and ETFs. In April 2025, Kraken launched 11,000 US-listed stocks and ETFs with commission-free trading as part of what it described as a phased national rollout.

These launches indicate a broader trend among crypto exchanges to integrate traditional financial instruments, including equities and ETFs, into digital asset platforms. The focus is on combining blockchain-based access with established securities markets.

Market Structure Signals in Tokenized Stocks

The data cited in Binance’s disclosure highlights structural developments in the tokenized stock market. While total market value and holder numbers have grown over the past month, the sharp decline in monthly active addresses suggests lower transaction frequency.

For users evaluating tokenized stock offerings on crypto platforms, custody arrangements and revenue models can affect how products are structured and how platforms generate income. The disclosed agreement clarifies that Binance participates directly in order-flow and stock-lending revenues generated through Alpaca’s infrastructure.

This level of transparency in published trading terms provides insight into how tokenized equity trading may be monetized within centralized exchange environments.

Our Assessment

Binance’s published Securities Trading Terms confirm a defined revenue-sharing structure with Alpaca covering payment-for-order-flow and stock-lending profits. Alpaca’s role as a brokerage, clearing, and custody provider connects Binance’s stock trading product to a significant share of the tokenized US stock market. The disclosure outlines how Binance may generate revenue from its expanding equity and ETF offering while the broader tokenized stock market shows rising valuations and holder counts alongside declining active trading activity.