Alpaca, a self-clearing broker-dealer founded in 2015, now custodies more than $1.5 billion of underlying shares for tokenized equities — roughly 94% of the market, by its own count. That dominance is about to face a new test: the Depository Trust & Clearing Corporation (DTCC) plans to launch its own tokenization service in October.
How Alpaca built the lead
Alpaca holds the underlying stocks one-to-one, executes trades, and handles minting and redeeming through its Instant Tokenization Network. It also supplies stock lending, short locates, and insured cash sweeps to issuers and market makers. The client list includes Binance, Kraken, Ondo, and Dinari.
The company raised $135 million on July 16, led by Peak XV, with debt from Kraken's parent Payward and BMO, bringing total funding to $435 million.
DTCC's entry into tokenization
The DTCC, which already clears and settles the vast majority of U.S. securities trades, is building its own tokenization platform. The service is set to go live in October. It will compete directly with third-party providers like Alpaca, though the DTCC has not yet detailed how its offering will differ from existing tokenized stock products.
SEC warns about third-party tokens
The Securities and Exchange Commission issued a statement in January drawing a line between two types of tokenized securities. Tokens sponsored by the issuing company carry legal rights tied to the underlying stock. Third-party tokens — the kind Alpaca and its clients issue — give holders only economic exposure plus intermediary risk.
The SEC warned that these third-party stock tokens can expose investors to additional ownership and intermediary risks. The warning did not name any specific company, but it applies broadly to the tokenized equity market.
Market size measurements vary widely
Alpaca's 94% share and the $1.5 billion figure come from its own measuring system. No independent reconciliation has been published. Public trackers tell a different story. RWA.xyz measured roughly $1.85 billion in distributed tokenized-stock value in early July. CoinGecko counted closer to $487 million at the end of the first quarter.
The gap between those numbers and Alpaca's self-reported figure highlights the lack of a standardized way to measure the market. Without a common yardstick, it's hard to say exactly how big the tokenized stock space is — or who really holds the largest share.
The DTCC's October launch will bring a new player into that uncertain landscape. Whether it chips away at Alpaca's lead or expands the overall market is the open question.
