Alpaca, a leading provider of brokerage infrastructure, recently announced it has secured $135 million in equity funding, forming part of a larger $435 million financing package. This significant capital injection is earmarked to accelerate the development of its "agent-first" brokerage platform, specifically targeting tokenized markets and AI-native financial services. The move positions Alpaca to further bridge traditional finance with the burgeoning on-chain ecosystem.
Fueling Tokenization and AI Integration
The $135 million equity round was led by Peak XV Partners, with notable participation from Elefund, Opera Tech Ventures (the venture capital arm of BNP Paribas Group), and Unbound. This equity component is complemented by $300 million in debt financing, primarily provided by Payward, the parent company of digital asset platform Kraken, and BMO. Alpaca intends to deploy these funds to enhance its API-based prime brokerage infrastructure, enabling financial institutions and fintechs to build and scale investment products across both conventional and blockchain-based markets. The company's strategy is centered on the belief that global markets are becoming increasingly connected, programmable, and accessible through software, driven by the convergence of AI and tokenization.
Market Leadership in Tokenized Equities
Alpaca has established itself as a dominant force in the tokenized equities space, reporting over $1.5 billion in assets under custody (AUC) for the underlying stocks that back tokenized equities. The firm also holds a commanding 94% market share in tokenized U.S. equities and ETFs. This market position is bolstered by strategic integrations with platforms like Ondo Finance, Backed Finance (xStocks), and Dinari, which facilitate institutional and retail access to tokenized U.S. equities globally. The company's infrastructure supports over 10 million brokerage accounts across hundreds of fintechs and institutions in more than 40 countries.
Strategic Growth and Industry Context
This latest funding round follows Alpaca's $150 million Series D financing announced in January 2026, which valued the company at $1.15 billion. The company has demonstrated significant business growth, doubling its revenue year-over-year for three consecutive years. Furthermore, its monthly active API user count has nearly quadrupled in the last six months, partly due to increasing interest in agentic AI applications. Alpaca's expansion includes acquiring regulated entities in the UK, Europe, and India, allowing it to passport services across 30 countries in the European Economic Area and launch global equities access. The broader financial landscape is witnessing a profound shift as traditional assets move onto blockchain networks through tokenization, while AI accelerates the creation of new financial applications.
What to Watch
Looking ahead, Alpaca's focus will be on leveraging this new capital to further develop its "agent-first" brokerage and API-first prime brokerage infrastructure. The integration of AI agents, designed to research markets, interact with brokerage services, and execute workflows programmatically, is a key area of investment. As the lines between traditional finance and blockchain technology continue to blur, Alpaca's ability to provide regulated infrastructure that connects these evolving markets will be crucial. Observers will be watching for further partnerships, particularly with major cryptocurrency exchanges and tokenization platforms, as Alpaca aims to solidify its role as a foundational layer for the next generation of global capital markets.
Original announcement: Business Wire