Binance Revenue-Sharing Deal with Alpaca Fuels Stock Push
Binance disclosed it receives 50% of Alpaca's PFOF fees and 65% of stock lending profits for its equities product. Alpaca, holding 29% of tokenized stocks, underscores Binance's expansion beyond crypto into tokenized traditional assets.
Quick Take
Binance gets 50% of PFOF fees and 65% of stock lending profit from Alpaca.
Alpaca custodies $480M in tokenized stocks, 29% market share.
Tokenized stocks saw 35% holder growth but 77% drop in active addresses.
Other exchanges like Bitget, Kraken also launching stock products.
Market Impact Analysis
BullishCrypto exchanges diversifying into equities could increase platform utility and attract users, supporting long-term growth.
Speculation Analysis
Key Takeaways
- Binance pockets 50% of PFOF fees and 65% of stock lending profits from its Alpaca partnership.
- Alpaca holds 29% of the $1.62B tokenized stock market, signaling Binance’s deep infrastructure play.
- Tokenized stock values rose 29% in 30 days, but active traders plummeted 77% — indicating a hodling trend.
- Exchanges like Bitget and Kraken are also launching stock products, heating up the tokenized equities race.
What Happened
Binance disclosed the financial terms of its equities product, revealing a revenue-sharing agreement with brokerage infrastructure firm Alpaca. The exchange will receive 50% of payment-for-order-flow fees and 65% of profits from stock lending after user interest is paid. The arrangement covers Binance’s access to over 7,000 US-listed stocks and ETFs, as well as a planned tokenized stock product called bStocks. This disclosure clarifies how Binance aims to monetize its push beyond cryptocurrencies.
The Numbers
Alpaca holds $480 million in assets under custody as of December 2025, representing 29% of the $1.62 billion tokenized stock market. The sector expanded 29% in total value over the past 30 days, while holder counts grew 35% to 304,700. However, monthly active addresses dropped 77% to just 31,877 — suggesting investors are accumulating and holding rather than actively trading. Alpaca itself raised $150 million at a $1.15 billion valuation in January, underscoring its infrastructure heft.
Why It Happened
Crypto exchanges are aggressively diversifying into traditional financial instruments. Binance’s move follows a broader industry trend where platforms seek to capture more user assets and activity. Tokenized securities offer around-the-clock trading and fractional ownership, aligning with crypto-native user behavior. The revenue-sharing model with Alpaca allows Binance to monetize equities without building brokerage infrastructure in-house.
Broader Impact
The deal sets a precedent for how crypto exchanges can structure partnerships with regulated financial infrastructure providers. It also arrives as competitors like Bitget and Kraken launch their own stock products, potentially accelerating tokenized security adoption. Regulators may scrutinize such arrangements, especially as PFOF faces criticism in traditional markets.
What to Watch Next
- Binance’s bStocks rollout and whether it will further tokenize traditional assets.
- Regulatory responses to crypto exchanges offering stock trading via PFOF models.
- Tokenized stock market activity — whether active addresses recover or continue declining.
This article is for informational purposes only and does not constitute financial advice.
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