Binance discloses Alpaca stake and revenue-sharing terms in stock-trading partnership

Binance said it holds a minority stake in Alpaca, which provides brokerage, clearing and custody infrastructure, while trading terms show Binance receives order-flow and stock-lending revenue from the equities offering.

22d ago

Fact Check

Multiple sources, including Binance's own Square channel post and the underlying Securities Trading Terms referenced therein, confirm both components of the claim. The Binance Square post and Cointelegraph article confirm the revenue-sharing terms (50% PFOF, 65% stock-lending profit). The MEXC/CoinCentral report and Wu Blockchain corroborate the minority-stake disclosure in the updated Securities Trading Terms issued by NEST Trading Limited (ADGM-regulated). Alpaca providing brokerage, clearing and custody infrastructure is consistently described.

Summary

Binance disclosed a minority stake in Alpaca and outlined commercial terms tied to its stock-trading product. Binance said Alpaca reportedly controls about 94% of the custody market for tokenized U.S. stocks and ETFs. Alpaca provides the brokerage, clearing and custody infrastructure for Binance’s securities offering, while Binance Securities trading terms state Binance receives 50% of payment for order flow fees and 65% of residual user stock-lending profit after interest is paid to users. The companies also announced a partnership to expand access to tokenized U.S. stocks and ETFs.

Terms & Concepts

payment for order flow: Fees paid for routing trades.
stock-lending: Lending shares to generate income.
tokenized U.S. stocks: Digital representations of U.S. shares on blockchain rails.