Key facts
- Binance and Alpaca have a revenue-sharing agreement for stock trading services.
- Binance will receive 50% of Alpaca's payment-for-order-flow (PFOF) fees.
- Binance will receive 65% of profits from user stock lending after user interest is paid.
- Alpaca provides brokerage, clearing, and custody infrastructure for Binance's stock trading product.
- Alpaca is a major provider of infrastructure for tokenized US stocks and ETFs.
Binance has disclosed a revenue-sharing agreement with Alpaca, the infrastructure provider for its US stock and ETF trading service offered to non-US users. Under the terms, Binance will receive 50% of Alpaca's payment-for-order-flow (PFOF) fees. Additionally, Binance will receive 65% of the profit generated from user stock lending, after accounting for interest paid to users. Alpaca handles the essential brokerage, clearing, and custody services for Binance's stock trading product. The company is also a significant player in providing infrastructure for tokenized US stocks and ETFs. Alpaca recently raised $150 million in a Series D funding round, achieving a valuation of $1.15 billion.