Alpaca Raises $430M for AI Securities Infrastructure

Alpaca, a fintech firm specializing in AI agent-enabled securities infrastructure, has successfully closed a significant funding round totaling $430 million. This substantial capital infusion is earmarked to accelerate the development of its next-generation trading and settlement systems, specifically designed to integrate with artificial intelligence agents. The company aims to solidify its position as a leader in providing API-first solutions for both traditional and tokenized assets.

The financing comprises a $135 million strategic equity investment led by Peak XV. Additional equity participants in this round include prominent investors such as Elefund, Opera Tech Ventures (the venture capital arm of BNP Paribas), and Unbound. Complementing the equity, Alpaca also secured debt financing from Payward, the operator of the cryptocurrency exchange Kraken, and BMO, underscoring broad financial sector confidence in its innovative approach.

Alpaca's platform caters to a sophisticated clientele, including quantitative hedge funds, active retail traders, market makers, digital asset exchanges, and tokenization platforms. Its core offering revolves around robust APIs that facilitate trading, settlement, and custody for a diverse range of assets, encompassing both established financial instruments and emerging on-chain digital securities. This dual capability positions Alpaca at the intersection of traditional finance and the rapidly evolving digital asset economy.

The company reports impressive traction, serving over 300 financial institutions across 40 countries and managing more than 10 million securities accounts. In the past three years, Alpaca has experienced revenue growth exceeding 100% year-over-year. Furthermore, its custody balance for underlying U.S. equities backing tokenized stocks has surpassed $1.5 billion, with monthly active users of its investment API quadrupling in the last six months alone. These metrics highlight the escalating demand for its specialized infrastructure.

With this new capital, Alpaca plans to aggressively expand its API-first prime brokerage services and enhance its securities infrastructure tailored for AI agents. The company has already made strides in global expansion, obtaining a license in India's GIFT City and initiating global equity trading services, starting with European equities, following the acquisition of a brokerage firm in the UK and Europe and completing passporting in 30 EEA countries. This strategic move broadens its operational reach and service capabilities significantly.

Founded in 2015 and led by CEO Tsuyoshi Yokokawa, Alpaca has now raised over $400 million to date. The company's focus on integrating AI capabilities into the core of securities infrastructure addresses a critical need in the market for more intelligent, automated, and efficient financial operations. As the financial industry increasingly embraces digital transformation and AI-driven strategies, Alpaca appears well-positioned to capitalize on these trends, offering a scalable and adaptable solution for the future of financial markets.