Crypto promised to eliminate stockbrokers, but 94% of its tokenized market now relies on an Alpaca
RWA Signal Insight
StocksAlpaca, a California-based broker-dealer, currently custodies over $1.5 billion in underlying shares for tokenized equities, representing approximately 94% of the market. Despite the industry's promise of decentralization and disintermediation, the tokenized stock ecosystem relies heavily on Alpaca as a central clearing and custody provider for major platforms like Binance, Kraken, Ondo, and Dinari. This concentration creates significant counterparty risk, as most third-party tokenized stocks offer only economic exposure rather than direct legal ownership or voting rights. The market faces further scrutiny following the failed SpaceX pre-IPO token offering, which highlighted the fragility of inventory promises across the intermediary chain. Meanwhile, the Depository Trust and Clearing Corporation (DTCC) is set to launch its commercial Tokenization Service in October, which aims to provide tokens with direct legal rights and dividends. By originating tokens within the traditional settlement infrastructure, the DTCC's entry threatens to disrupt the current brokerage-dependent model. This shift marks a pivotal transition from fragmented, third-party tokenization to institutional-grade, regulated digital assets.
Key points
- Alpaca custodies over $1.5 billion in shares, controlling roughly 94% of tokenized US stocks.
- Major platforms including Binance, Kraken, Ondo, and Dinari rely on Alpaca's infrastructure.
- DTCC launches its commercial Tokenization Service in October to provide direct legal ownership.
- Third-party tokenized stocks often lack direct voting rights and dividend entitlements for holders.
Background
The Depository Trust and Clearing Corporation (DTCC) serves as the primary settlement backbone for the U.S. stock market, holding over $114 trillion in securities. It acts as the central registry for ownership, ensuring that trades are cleared and settled securely between financial institutions. Its upcoming tokenization service aims to bridge traditional finance with blockchain by allowing DTC-held securities to be issued directly as digital tokens.