A Binance legal document disclosed a revenue-sharing agreement with Alpaca, which includes sharing 50% of the stock custodian’s order flow revenue with the cryptocurrency exchange.

Binance disclosed a revenue-sharing arrangement with custodian and brokerage infrastructure API provider Alpaca, which has become a major infrastructure provider in the custody of tokenized US stocks and exchange-traded funds (ETFs).

Under Binance Securities Trading Terms published Tuesday, Binance will receive 50% of Alpaca’s payment-for-order-flow fees and 65% of remaining profit from user stock lending after users are paid interest, Binance will receive 50% of Alpaca’s payment-for-order-flow, or PFOF, fees and 65% of profit from user stock lending after the platform pays user interest.

Alpaca provides brokerage, clearing and custody infrastructure for Binance’s stock trading product and is also a major infrastructure provider in tokenized US stocks and ETFs. The company raised $150 million at an $1.15 billion valuation for its brokerage infrastructure in January.

The disclosure shows how Binance may monetize its push beyond crypto after launching access to more than 7,000 US-listed stocks and ETFs and previewing a later tokenized stock product called bStocks.

Cointelegraph contacted Binance for comment on the arrangement and asked whether it holds a minority stake in Alpaca.

Binance Securities Trading Terms for tokenized stocks and ETFs, Revenue-Sharing Arrangements. Source: Binance

Alpaca said it held $480 million in assets under custody (AUC) as of December 2025, which represents a 29% market share of the current $1.62 billion value of total tokenized stocks, according to data provider RWA.xyz.

The total value of tokenized stocks rose by around 29% during the past 30 days, while holders rose 35% to 304,700. However, monthly active addresses declined by over 77%, to 31,877, signaling that investors are holding, rather than actively trading, these assets.

Tokenized stock market total value. Source: RWA.xyz

Other large cryptocurrency exchanges are also expanding their offering to include US stocks and ETFs, responding to the growing investor demand for more accessible blockchain-based trading products.

In April, crypto exchange Bitget launched a proxy offering tied to the pre-initial public offering (IPO) phase of Elon Musk’s aerospace manufacturing and space transportation company, SpaceX, Cointelegraph reported at the time.

Related: South Korea plans July rules for tokenized securities

Binance also launched a SpaceX-linked pre-IPO futures product tied to the expected valuation of the company ahead of its public listing, Cointelegraph reported on May 21.

In January, Vienna-based crypto exchange Bitpanda said it was expanding its offering to include about 10,000 stocks and ETFs.

In April 2025, Kraken launched 11,000 US-listed stocks and ETFs with commission-free trading in an effort to bring “equities and digital assets together” under one trading platform, as part of a “phased national rollout.”

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Source: https://cointelegraph.com/news/binance-partnership-tokenized-stock-custodian-alpaca?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound