Binance has a revenue-sharing agreement with Alpaca for its US stock and ETF trading service for non-US users. Binance will receive 50% of Alpaca's payment-for-order-flow fees and 65% of user stock lending profits.
This revenue-sharing arrangement highlights the financial incentives and operational integration between cryptocurrency exchanges and traditional securities infrastructure providers as they expand into new asset classes.
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.
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