Binance discloses revenue-sharing deal with Alpaca
A Binance legal document disclosed a revenue-sharing agreement with Alpaca, which includes sharing 50% of the stock custodian’s order flow revenue with the cryptocurrency exchange.
Binance disclosed a revenue-sharing arrangement with custodian and brokerage infrastructure API provider Alpaca, which has become a major infrastructure provider in the custody of tokenized US stocks and exchange-traded funds (ETFs).
Under Binance Securities Trading Terms published Tuesday, Binance will receive 50% of Alpaca’s payment-for-order-flow fees and 65% of remaining profit from user stock lending after users are paid interest, Binance will receive 50% of Alpaca’s payment-for-order-flow, or PFOF, fees and 65% of profit from user stock lending after the platform pays user interest.
Alpaca provides brokerage, clearing and custody infrastructure for Binance’s stock trading product and is also a major infrastructure provider in tokenized US stocks and ETFs. The company raised $150 million at an $1.15 billion valuation for its brokerage infrastructure in January.