Binance Partners with Alpaca for Stocks and ETFs

Binance has announced a strategic partnership with Alpaca, a custody platform that holds a dominant position in the market for tokenised US stocks and ETFs. With a market share of approximately 94% in this segment, Alpaca becomes a key player in the integration between traditional financial markets and the crypto space.

The partnership introduces an interesting revenue model for Binance. The exchange receives 50% of Alpaca’s payments derived from Payment for Order Flow (PFOF), plus 65% of the remaining profit from lending shares to users, after interest has been paid to investors. This arrangement allows Binance to generate income from US stock and ETF trading without having to own the platform outright.

Binance has also disclosed that it holds a minority stake in Alpaca, underscoring the company’s long-term commitment to this collaboration.

Tokenised stocks and ETFs as a growth driver

Binance’s expansion into tokenised US stocks and ETFs fits within a broader trend of crypto platforms bringing traditional financial products onto the blockchain. Users can now invest directly in US ETFs via Binance, without intermediaries. This offers both convenience and potentially lower costs for international investors.

The timing of this partnership is interesting given the growing demand for tokenised equities on the Binance platform. By leveraging Alpaca’s custody solution, Binance secures a reliable partner that already dominates nearly the entire segment.

Implications for the crypto market

This partnership testifies to the ongoing convergence between traditional and crypto markets. Binance is positioning itself as an all-in-one platform where investors can trade both cryptocurrencies and classic stocks. This could lower the barrier for newcomers from the traditional financial sector.

For Binance users, this provides access to more diversification options, while the platform itself generates new revenue streams from PFOF and stock lending income. The collaboration with Alpaca appears to be a win-win arrangement that supports the exchange’s growth ambitions.

Meer informatie over de voorwaarden van dit aanbod vind je op de Binance website