Alpaca, a brokerage infrastructure startup based in San Mateo, is expanding its services to include trade financing for hedge funds. This move marks the company's entry into the prime brokerage sector, traditionally dominated by major banks. The new offerings will include margin, financing, and securities lending capabilities tailored for institutional clients.
In July 2026, the company secured $135 million in an equity round, which is part of a larger $435 million funding package dedicated to its prime brokerage infrastructure. Alpaca's total funding has now exceeded $300 million. The platform currently supports millions of accounts across more than 40 countries and has reported growth in both trading volume and revenue.
The firm operates as a FINRA-regulated, self-clearing broker-dealer and holds memberships with the DTCC, OCC, FICC, and Nasdaq. Alpaca provides services to hedge funds and proprietary trading firms, offering algorithmic trading and low-latency APIs. The company also custodies tokenized US equities and has established partnerships with digital asset exchanges, including Bybit and Kraken, to facilitate trading in US stocks and ETFs.
