Alpaca Raises $135 Million to Improve Tokenized Stock Infrastructure

Crypto brokerage firm Alpaca raised $135 million to bolster its infrastructure for tokenized stocks, facilitating the connection of traditional U.S. equities to blockchain technology for trading and settlement. The funding comes from a round led by Peak XV, with further contributions from Elefund, BNP Paribas' Opera Tech Ventures, and Unbound.

As of now, Alpaca has reportedly cleared or custodied approximately 94% of tokenized U.S. equities, managing over $1.5 billion in underlying assets for its partners. This investment comes on the heels of a $150 million Series D funding round in January that valued Alpaca at $1.15 billion, bringing the total funding raised to $435 million, which also includes debt financing from Kraken parent company Payward and BMO.

Despite the momentum in tokenization, Alpaca faces ongoing challenges as regulated firms still must hold the underlying shares and manage corporate actions when converting stocks into tokenized assets on the blockchain. The limitations of this model are significant, as the process of tokenization does not eliminate the necessity for compliance with traditional financial regulations.

Alpaca's Instant Tokenization Network is designed to allow users to mint and redeem tokenized stocks across a 24/7 trading cycle, linking equities to crypto market dynamics through stablecoin funding mechanisms. This system contrasts with traditional market hours and enhances liquidity. The demand for tokenized equities surged dramatically in 2025, with market valuation increasing nearly 3,000%, reaching around $963 million by January.

As competition heats up, notable players like Coinbase and Kraken are also advancing their offerings in on-chain equities, suggesting an expanding market landscape. Alpaca did not reveal a new valuation following this latest funding and has yet to provide further comments on the implications of this financial boost.