Binance discloses revenue
RWA Signal Insight
StocksBinance has entered into a revenue-sharing agreement with brokerage infrastructure provider Alpaca, securing 50% of payment-for-order-flow fees and 65% of profits from user stock lending. This partnership supports Binance's expansion into tokenized US stocks and ETFs, a sector where Alpaca serves as a primary custodian. Alpaca currently manages $480 million in assets under custody, accounting for a 29% market share of the $1.62 billion tokenized stock industry. While the total value of tokenized stocks has grown by 29% recently, monthly active addresses have dropped by 77%, suggesting a shift toward long-term holding rather than active trading. This move highlights how major crypto exchanges are monetizing their transition into traditional financial products to meet investor demand. By integrating infrastructure like Alpaca, Binance aims to scale its bStocks product and broader equity offerings. The arrangement underscores the deepening integration between centralized crypto exchanges and regulated brokerage services to bridge digital and traditional asset markets.
Key points
- Binance receives 50% of Alpaca's order flow fees and 65% of stock lending profits.
- Alpaca holds $480 million in assets, representing 29% of the $1.62 billion tokenized market.
- Tokenized stock holders increased 35% to 304,700, despite a 77% drop in active addresses.
- Binance offers access to over 7,000 US-listed stocks and ETFs via its platform.
Background
Alpaca is a brokerage and custody infrastructure provider that offers APIs for financial institutions to integrate stock and ETF trading. It enables platforms to offer tokenized versions of traditional equities by handling the underlying clearing, custody, and regulatory requirements. This infrastructure is essential for crypto exchanges looking to bridge the gap between digital assets and traditional securities.