Binance Expands into Traditional Securities with Alpaca Partnership

Binance's foray into US stock and ETF trading has been met with much anticipation, and it seems that the exchange has found a way to monetize this new venture. According to sources, Binance has partnered with Alpaca Securities, which will handle the execution, clearing, settlement, and custody of securities traded on the platform.

What's more interesting is that Binance has acquired a minority stake in Alpaca and stands to gain from 50% of the payment-for-order-flow fees tied to user stock orders. Additionally, the exchange will receive 65% of the remaining profit from user stock lending after interest is paid to users.

This move is significant because it gives Binance a foothold in the traditional securities market, which is expected to become increasingly important as crypto and traditional assets converge. The partnership also sets the stage for Binance's plans to launch bStocks, tokenized securities representing select US stocks and ETFs.