Binance and Alpaca Reach Revenue-Sharing Agreement

The world's largest cryptocurrency exchange, Binance, has disclosed details of a revenue-sharing agreement with custodian and brokerage infrastructure provider Alpaca. Alpaca has become a leading infrastructure provider for the custody of tokenized US stocks and exchange-traded funds (ETFs). Cointelegraph.com reports .

According to new trading terms announced by Binance, the exchange will receive 50% of Payment for Order Flow (PFOF) revenue from the Alpaca platform, as well as 65% of net profits from stock lending after interest payments to users. Alpaca will provide brokerage, clearing, and custodian services for stock trading on the Binance platform.

This partnership is part of Binance's strategy to expand beyond the crypto space and monetize its services. Previously, the exchange opened access to over 7,000 US stocks and ETFs and announced a new tokenized product called bStocks. For reference, Alpaca raised $150 million in January at a $1.15 billion valuation.

According to RWA.xyz data, the tokenized stock market is growing rapidly. Over the last 30 days, the total value of this market increased by 29%, while the number of holders rose by 35% to 304,700. However, the decline in active addresses suggests that investors prefer long-term holding over active selling of these assets.

Other major crypto exchanges are also entering traditional financial markets. For example, the Bitget exchange launched a proxy offer linked to pre-IPO shares of Elon Musk-led SpaceX in April. Such moves indicate growing demand for blockchain-based trading products.