Three Modes of CEX US Stock Products
Centralized exchanges (CEX) have evolved their US stock offerings into three distinct models: traditional API-based access, tokenized securities, and perpetual contracts. The traditional API model connects directly to stock exchanges via brokers, providing users with legal protections including dividend payments and voting rights. In contrast, the tokenized model creates on-chain representations of stocks but relies on centralized clearinghouses for settlement. Perpetual contracts enable leveraged speculation without holding the underlying assets.
Tokenized Mode: Alpaca Controls 94% of Clearing
The key clearing agent for tokenized US stocks is Alpaca, which holds an estimated 94% market share in this segment. This high concentration creates a unique risk: the time gap between real-time on-chain trading and off-chain T+1 settlement. Price movements during this interval can lead to settlement discrepancies, margin calls, and potential losses. Despite these risks, the tokenized US stock market remains in a blue ocean phase, with total asset value having expanded 15-fold. The potential for using these tokens as DeFi collateral is beginning to emerge, though regulatory clarity is still lacking.
Multi-Mode Parallel Strategy by Exchanges
To balance compliance and innovation, major exchanges are deploying multi-mode parallel strategies. Traditional API offerings cater to institutional clients requiring regulatory safeguards and full shareholder rights. Tokenized products attract on-chain native users seeking composability with DeFi protocols. Perpetual contracts serve speculative traders looking for leverage. This layered design helps mitigate risk but does not eliminate the clearing monopoly and settlement time lag inherent in tokenized models. Industry participants are watching for potential regulatory interventions or alternative clearing structures to reduce concentration risk.
