Crypto brokerage firm Alpaca has raised $135 million to enhance its infrastructure for tokenized stocks, which connect traditional U.S. equities to blockchain settlement rails. The funding round was led by Peak XV, with contributions from Elefund, BNP Paribas’ Opera Tech Ventures, and Unbound, according to an announcement on Thursday.
Key Details
Alpaca has previously cleared or held in custody around 94% of tokenized U.S. equities and currently manages over $1.5 billion in underlying stocks. The latest funding follows a $150 million Series D round in January, which valued the company at $1.15 billion. The total financing package, including debt from Kraken parent Payward and BMO, amounts to $435 million.
Background
Despite advancements in tokenization, Alpaca noted that regulated firms must still hold the underlying shares and manage corporate actions, which presents a significant constraint in the market. The firm's Instant Tokenization Network enables market participants to mint and redeem tokenized stocks against underlying shares continuously. These products often combine blockchain-based stock exposure with stablecoin funding or redemption, linking equities to crypto's 24/7 settlement capabilities.
The development could influence the cryptocurrency and equity markets, particularly for tokenized assets, as it enhances the infrastructure connecting traditional stocks with blockchain technology. Investors may see increased interest in tokenized equities as Alpaca expands its offerings. Watch for further announcements regarding Alpaca's partnerships and product launches in the coming months.