Alpaca Secures $135 Million to Build AI-Native Brokerage Infrastructure
This raise, as reported by FinTech Global, comes just six months after its Series D and brings its total capital infusion to $435 million.
Alpaca has hit a $1.15 billion valuation on the back of a $135 million equity round led by Peak XV, with an additional $300 million in debt financing. This raise, as reported by FinTech Global, comes just six months after its Series D and brings its total capital infusion to $435 million. The move signals a concentrated bet on the infrastructure needed to merge traditional capital markets with tokenized assets and AI-native financial applications.
Capital Deployment: Speed Over Hype
The financing package is split between equity for growth and debt for operational scaling. The equity portion will accelerate Alpaca's API-first prime brokerage platform and its "agentic AI" capabilities—a term the company uses to describe AI that can act on behalf of clients within financial systems. The debt facility, provided chiefly by BMO and Payward (Kraken's parent), provides balance sheet strength to back the custody of client assets, which have already surpassed $1.5 billion for tokenized equities.
Key metrics from the prior six months: monthly active API users grew nearly fourfold, and revenue has doubled annually for three consecutive years.
Geographic and Regulatory Groundwork
A significant portion of the fresh capital will fuel an international regulatory build-out. Since its January Series D, Alpaca has acquired an IFSCA-regulated broker-dealer in India's GIFT City and secured authorized entities in the UK and Europe, enabling passporting across all 30 EEA countries. This isn't just expansion; it's the assembly of a regulated chassis to handle cross-border tokenized asset flows—a prerequisite for institutional adoption.
The Macro Play: Tokenization and AI
The raise is explicitly framed against two structural shifts: the migration of assets onchain via tokenization and the rise of AI-built financial products. Alpaca's pitch is that these trends will generate demand for regulated plumbing that can connect traditional and decentralized markets. Its clients already include fintechs, banks, and crypto-native platforms needing to access global equities, including the newly launched European share trading.
The Verdict: Alpaca is deploying capital to become the default infrastructure layer for a market that doesn't fully exist yet. The bet is that tokenized assets and AI agents will require a specific kind of regulated, API-driven brokerage—and that being the first to build it at scale creates an insurmountable moat. The valuation jump to $1.15 billion is the market pricing that optionality. The next 18 months will show whether the volume of onchain asset flows justifies the multiple.
