TLDR
- Binance disclosed its minority Alpaca stake within securities trading terms tied to ADGM-regulated brokerage services.
- Alpaca holds around 94% custody market share for tokenized US stocks and ETFs globally.
- The terms describe omnibus account custody arrangements for customers using Binance securities trading services.
- Binance said Alpaca was selected based on execution quality, regulatory status, and US market access.
- The filing states Binance receives 50% of Alpaca payment for order flow revenue.
Binance has disclosed that it holds a minority stake in Alpaca as part of updated Securities Trading Terms connected to its regulated securities trading service. The disclosure appears within terms issued by NEST Trading Limited, an authorised person regulated by the Financial Services Regulatory Authority of Abu Dhabi Global Market.
The terms state that Securities Trading is offered under Binance’s ADGM licence, while access may be restricted in several jurisdictions, including the United States, China, Hong Kong, the European Union, and prohibited countries listed by the company. Binance also stated that the securities trading provisions should be read alongside its wider Terms of Use.
Binance disclosed that it holds a minority stake in Alpaca, which holds approximately 94% market share in the custody of tokenized US stocks and ETFs.
Binance just partners with Alpaca for US stock and ETF trading. Per their agreement, Binance receives 50% of Alpaca’s Payment… pic.twitter.com/8Pk1v4oZYx
— Wu Blockchain (@WuBlockchain) June 3, 2026
The disclosure is notable because Alpaca holds approximately 94% market share in the custody of tokenized US stocks and ETFs. Binance presented the Alpaca relationship within a framework covering execution quality, custody arrangements, customer protection, and order routing standards.
Alpaca Role in Custody and Market Access
Under the terms, Alpaca will maintain a single legal omnibus brokerage account in the name of NEST Trading Limited as a client account on behalf of customers. The document states that individual customers will not have separate Alpaca accounts, while their assets may be pooled with assets of other NEST Trading Limited clients.
Binance said customers remain subject to safe custody protections under the ADGM Conduct of Business Rulebook. The terms also state that assets may be held with Alpaca as a third party outside ADGM, where local market practices, insolvency rules, and custody arrangements may differ.
The company said Alpaca was selected as an execution partner after assessment against best execution criteria. These criteria included execution quality, access to United States market centres, regulatory status as a FINRA member broker-dealer, and Alpaca’s obligation to obtain the National Best Bid and Offer or better.
Order Flow Revenue and Conflict Controls
The terms state that Alpaca receives payment for order flow in connection with execution of customer orders. Binance and Alpaca have agreed to a revenue-sharing arrangement under which Binance receives 50% of payment for order flow revenue received by Alpaca.
Binance acknowledged that this arrangement creates a conflict of interest because it may give the company a financial incentive to retain Alpaca based on revenue rather than execution quality. The company said the conflict is managed through selection criteria, Alpaca’s independent regulatory obligations, and ongoing monitoring of execution quality.
According to the terms, Binance conducts regular reviews of Alpaca’s execution quality, including checks against NBBO at the time of order receipt and price improvement rates. Binance stated that it may require remediation or reconsider the relationship if concerns are identified.
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