Binance has publicly disclosed its minority stake in brokerage infrastructure provider Alpaca and a revenue-sharing agreement tied to its U.S. stock and ETF offering for eligible non-U.S. users. The details emerged in the Binance Securities Trading Terms published Tuesday, shedding light on how the exchange plans to monetize its equities business.
Revenue Split: Order Flow and Stock Lending
Under the terms, Binance will receive 50% of Alpaca's payment-for-order-flow fees. Additionally, the exchange will take 65% of the remaining profit from user stock lending after users receive their interest payments. This creates a two-pronged revenue model for the securities service.
The product currently offers access to more than 7,000 U.S.-listed stocks and ETFs, with fractional purchases starting as low as $5. Trading is available around the clock from Monday through Friday. Users can fund purchases with USDC, BNB, USDT, USD1, and $U, where supported.
Execution, Custody, and Alpaca's Market Share
Binance confirmed that Nest Trading acts as the introducing broker, while Alpaca Securities handles execution, clearing, settlement, and custody. The exchange does not directly custody the securities traded through the product. Alpaca controls roughly 94% of the custody market for tokenized U.S. stocks and ETFs, making it a dominant infrastructure player.
Alpaca's Fundraising and CEO Comments
The brokerage firm raised $150 million at a $1.15 billion valuation earlier this year. CEO Yoshi Yokokawa noted that Alpaca's regulated broker-dealer infrastructure helped enable Binance's expansion into additional investment products.
Tokenized Equities: bStocks on the Horizon
The current stock offering does not issue tokenized shares. However, Binance said its planned bStocks product will allow eligible users to convert supported equities into on-chain assets. Separately, users can participate in fully paid securities lending starting June 4, 2026. The move mirrors similar expansions by exchanges like Kraken, Bitpanda, and Bitget, which have also added stock and ETF trading through blockchain-linked platforms.