Binance has disclosed a revenue-sharing arrangement with brokerage infrastructure provider Alpaca, offering one of the clearest looks yet at how the world's largest crypto exchange plans to monetize its growing push into tokenized stocks and traditional financial markets.

The disclosure comes as Binance expands beyond cryptocurrencies with access to more than 7,000 US-listed stocks and exchange-traded funds (ETFs), while preparing to launch a tokenized stock product known as bStocks.

Binance's New Revenue Engine

According to Binance's Securities Trading Terms published Tuesday, the exchange receives 50% of Alpaca's payment-for-order-flow (PFOF) revenue and 65% of profits generated from stock lending activities after users are paid interest.

The arrangement provides a rare glimpse into the business model supporting Binance's expansion into equities and tokenized securities. While crypto trading remains Binance's core business, the agreement suggests the company is building additional revenue streams tied to stock trading and asset lending.

Alpaca serves as the brokerage, clearing and custody provider behind Binance's stock trading product and has emerged as one of the largest infrastructure providers in the growing tokenized stock market.

The company raised $150 million at a $1.15 billion valuation in January as investors increasingly bet on the future of tokenized securities.

Tokenized Stocks Become the Next Battleground

The disclosure arrives as tokenized equities continue to gain momentum across the digital asset industry.

According to RWA.xyz, Alpaca held approximately $480 million in assets under custody as of December 2025, representing about 29% of the current $1.62 billion tokenized stock market.

The sector has expanded rapidly over the past month alone. Total market value rose roughly 29%, while the number of holders increased 35% to more than 304,000 investors.

At the same time, monthly active addresses declined more than 77%, suggesting many investors are accumulating tokenized stocks as longer-term holdings rather than actively trading them.

The trend has strengthened the investment case for exchanges seeking new revenue opportunities beyond traditional crypto trading.

Crypto Exchanges Race Toward Wall Street

Binance is far from alone in pursuing tokenized equities. Major crypto exchanges increasingly view stocks and ETFs as the next frontier in digital asset adoption, blurring the line between traditional finance and blockchain-based markets.

In April, Bitget launched a proxy investment product tied to SpaceX's pre-IPO market. Binance followed with a SpaceX-linked pre-IPO futures product based on the company's expected valuation before any public listing.

Kraken has rolled out access to 11,000 US-listed stocks and ETFs, while Bitpanda expanded its offering to include approximately 10,000 equities and exchange-traded funds.

The growing competition highlights a broader industry shift as exchanges race to become one-stop financial platforms offering crypto, stocks, ETFs and tokenized assets through a single interface.

Beyond Crypto

The Alpaca agreement suggests Binance's ambitions extend well beyond digital assets.

Rather than simply offering tokenized stocks as an additional product, the exchange appears to be building the infrastructure and revenue model needed to compete in a future where equities, ETFs and other traditional assets increasingly move onto blockchain rails.

As tokenized securities continue gaining traction, the question is no longer whether crypto exchanges will enter traditional finance, but which platform will dominate the emerging market for onchain stocks.