Binance Bolsters Traditional Market Presence through Alpaca Partnership

Binance's expansion into traditional markets has taken another step forward with its acquisition of a minority stake in Alpaca, a leading fintech company.

Alpaca holds approximately 94% of the market share for tokenized US stock custody, making it a crucial player in the infrastructure layer of tokenized equities.

The partnership between Binance and Alpaca will allow the former to share revenue through Payment for Order Flow fees, which account for 50% of Alpaca's PFOF earnings. This is a significant revenue stream in retail equity trading, particularly as more crypto-native users start exploring equity trading on Binance's platform.

The deal also includes profit sharing from user stock lending, with Binance entitled to 65% of the remaining profits after Alpaca pays out interest to users whose shares are being lent. This deepens the commercial logic behind the partnership and highlights Binance's commitment to building a hybrid financial platform that combines crypto trading with traditional equity access.