# Alpaca to Launch Prime Brokerage in 2027 to Connect Crypto and Stock Markets

- URL: https://stocks.freetheai.org/news/alpaca-to-launch-prime-brokerage-in-2027-to-connect-crypto-and-stock-markets-ce1f8b
- Published: 2026-10-14T15:53:27Z
- Category: company_news; sentiment: bullish; impact: medium
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California-based financial technology firm Alpaca plans to introduce a prime brokerage business in the first quarter of fiscal year 2027. The company aims to expand its services by offering financing, custody, and securities lending to help hedge funds and institutional investors trade across cryptocurrency and traditional stock markets.

The move is designed to improve capital efficiency and resolve settlement friction between digital assets and traditional equities. Crypto platforms typically require trades to be fully pre-funded, whereas conventional stock markets operate on longer settlement cycles. Alpaca already holds more than $3.5 billion in underlying U.S. shares that back tokenized equities for major platforms, a total that has grown eightfold over the past year.

To support the expansion, Alpaca plans to leverage its balance sheet alongside debt and credit lines, following $135 million in equity and $300 million in debt raised earlier this year. Investors and institutions will be watching how Alpaca resolves interoperability challenges around minting and redeeming tokenized shares, as well as how it competes with other firms expanding into institutional prime brokerage.

## Key points

- Alpaca plans to launch its prime brokerage unit in the first quarter of fiscal year 2027.
- The service aims to provide institutional financing, custody, and securities lending across crypto and traditional markets.
- Alpaca holds over $3.5 billion in underlying U.S. equities backing tokenized stocks, up eightfold over the past year.
- The company plans to fund the new business using a combination of balance sheet funds, debt, and credit lines.

## Questions and answers

### When will Alpaca launch its prime brokerage business?

Alpaca plans to launch its prime brokerage business in the first quarter of fiscal year 2027.

### What services will Alpaca's prime brokerage offer?

It will offer institutional financing, custody, and securities lending to bridge crypto platforms and traditional stock markets.

### How much does Alpaca hold in tokenized share assets?

Alpaca holds more than $3.5 billion in underlying U.S. shares that back tokenized equity products.