Alpaca raises $135M for tokenized AI brokerage infrastructure
Brokerage provider Alpaca has secured $135 million in equity and up to $300 million in debt to build AI-driven tokenized trading infrastructure, signaling deepening ties between traditional finance and crypto rails.
Brokerage infrastructure provider Alpaca has raised $135 million in a funding round led by Peak XV, supplementing the capital with up to $300 million in debt financing from Kraken parent Payward and BMO. The equity injection follows a $150 million Series D round closed in January, which valued the fintech at $1.15 billion. The company counts the venture capital arm of BNP Paribas among its earlier backers.
Alpaca plans to deploy the new funds to accelerate its agent-first brokerage and API-first prime brokerage infrastructure. This points to an emerging market dynamic where artificial intelligence models act as autonomous financial participants. These AI-native services require robust, regulated backend systems to execute trades and manage risk at scale.
Data aggregator Token Terminal reported on Wednesday that the global market capitalization of tokenized stocks hit a record $2.3 billion. Crypto platforms are increasingly bringing traditional investment products onto blockchain rails. This infrastructure effectively opens up assets to investors located outside of the United States who face barriers to direct market access.
Alpaca's commercial traction in this space was underscored last month when Binance disclosed a revenue-sharing arrangement with the firm. Alpaca is providing the brokerage, clearing, and custody infrastructure for Binance’s stock trading product. “As tokenization reshapes access to global markets and AI accelerates the creation of new financial applications and market participants, demand is growing for regulated infrastructure built for this paradigm shift,” said Yoshi Yokokawa, co-founder and CEO of Alpaca.
The composition of Alpaca's financing carries notable implications for institutional investors. While venture capital typically funds early-stage growth, the $300 million debt facility from a traditional lender like BMO alongside Kraken's parent suggests Alpaca is generating tangible revenue. For market professionals, the deal underscores that the convergence of decentralized and traditional finance is moving beyond speculative pilots into capital-intensive, institutional-grade operations.
