What did Binance disclose about its deal with Alpaca?

Binance disclosed a revenue-sharing agreement with Alpaca, a brokerage and custody infrastructure provider that supports its stock and ETF trading services. The arrangement reveals how Binance generates revenue from its expansion into traditional financial products.

How does Binance make money from the Alpaca partnership?

Under the disclosed terms, Binance receives 50% of Alpaca’s payment-for-order-flow (PFOF) fees and 65% of profits from stock lending after users receive their interest payments. These revenue streams are tied to activity on Binance’s stock trading platform.

Why is the Binance-Alpaca agreement important for investors?

The disclosure provides insight into Binance’s business model beyond cryptocurrency trading. It shows the exchange is building additional revenue sources linked to stocks, ETFs and potentially tokenised securities.

What is payment-for-order-flow (PFOF)?

Payment-for-order-flow is a practice where a trading platform receives compensation for routing customer orders to market makers or trading firms. In this case, Binance shares in the fees generated through Alpaca’s brokerage infrastructure.

What role does Alpaca play in Binance’s stock trading business?

Alpaca provides brokerage, clearing and custody infrastructure for Binance’s stock trading products. The company also plays a significant role in the custody of tokenised US stocks and ETFs.

How large is Alpaca's business today?

Alpaca raised $150 million in January at a valuation of approximately $1.15 billion. The funding highlights growing investor interest in infrastructure that connects traditional finance with blockchain-based markets.

Why is Binance expanding into stocks and ETFs?

Binance is seeking growth opportunities beyond digital assets by offering access to traditional financial products. The exchange has already launched trading for more than 7,000 US-listed stocks and ETFs and has outlined plans for tokenised stock products.

What are Binance’s bStocks?

bStocks are Binance’s planned tokenised stock products. While details remain limited, the initiative is designed to bring traditional equities onto blockchain-based infrastructure, potentially making them easier to trade and access globally.

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Binance reveals Alpaca revenue-sharing stock deal

Written by Isaac FrancisPublished Jun 4, 2026, 2:28 AM

Binance has disclosed a revenue-sharing arrangement with brokerage and custody infrastructure provider Alpaca, revealing how the cryptocurrency exchange generates income from its growing stock and exchange-traded fund trading business.

Under trading terms published on Tuesday, Binance will receive 50% of Alpaca’s payment-for-order-flow fees and 65% of remaining profits generated from user stock lending after interest payments are made to customers.

The disclosure shows how Binance may monetise its expansion beyond digital assets after launching access to more than 7,000 US-listed stocks and ETFs and outlining plans for a future tokenised stock offering known as bStocks.

Alpaca provides brokerage, clearing and custody infrastructure for Binance’s stock trading platform and has also become a key service provider supporting the custody of tokenised US stocks and ETFs.

The company raised $150 million in January at a valuation of $1.15 billion, underscoring investor interest in infrastructure supporting the convergence of traditional finance and blockchain-based markets.

The agreement emerges as major cryptocurrency exchanges increasingly move into tokenised securities and equity trading products in response to demand for blockchain-based access to traditional financial assets.

Competitors including Bitget, Bitpanda and Kraken have also expanded into stock and ETF products, with Kraken launching access to 11,000 US-listed equities and ETFs as part of its strategy to combine traditional securities and digital assets on a single platform.