California-based broker-dealer Alpaca acts as the primary custodian for the majority of the tokenized stock market. According to data from Token Terminal, the firm held 83.5% of the market capitalization for tokenized equities as of October 2026. Alpaca's own internal reports from July 2026 suggest an even higher figure, claiming control over approximately 94% of the US tokenized stock and ETF market, backed by over $1.5 billion in underlying shares.
The company provides infrastructure for more than 10 issuers and platforms, including major industry players such as Binance, Robinhood, Coinbase, Ondo, and xStocks. Alpaca's services include real-time minting and redemption of tokens, as well as the processing of corporate actions like dividends and stock splits. The firm operates as a self-clearing broker-dealer, utilizing its proprietary Instant Tokenization Network to manage these processes.
In July 2026, Alpaca secured $135 million in an equity financing round led by Peak XV, bringing its total capital raised to $435 million. Founded in 2015, the company has established itself as a critical infrastructure provider. However, analysts note that this concentration of custody services creates a potential systemic risk, as operational issues at the firm could affect multiple trading platforms simultaneously.
The discrepancy between Alpaca's self-reported 94% market share and the 83.5% figure provided by Token Terminal may stem from differences in methodology or reporting periods. As demand for tokenized equities grows, the company's ability to maintain its dominant position will depend on competition from other custodians and potential regulatory scrutiny regarding the concentration of market infrastructure.
