Alpaca, a cryptocurrency brokerage, has successfully raised $135 million to enhance its infrastructure for tokenized stocks, which connects traditional U.S. equities with blockchain technology. This funding, led by Peak XV and supported by Elefund, BNP Paribas’ Opera Tech Ventures, and Unbound, aims to bolster the on-chain trading capabilities of U.S. stocks. Previously, the company has cleared or held custody of about 94% of tokenized U.S. equities, managing over $1.5 billion in underlying stocks. This recent financing follows a $150 million Series D round in January that valued Alpaca at $1.15 billion. Total funding for the firm now stands at $435 million, significantly boosted by debt financing from Kraken's parent company, Payward, and BMO. Despite the rapid growth in the tokenized equities market, which surged nearly 3,000% in 2025 to reach approximately $963 million by January, significant regulatory hurdles remain. Tokenization does not eliminate the need for regulated entities to hold the underlying shares or manage corporate actions, which limits market expansion. Alpaca’s Instant Tokenization Network allows continuous minting and redemption of tokenized stocks, linking traditional equities to crypto’s 24/7 settlement features. As competition in the tokenized asset space increases with firms like Coinbase and Kraken entering the market, Alpaca continues to position itself as a leader in this evolving landscape. No new valuation was disclosed in the funding announcement, and further comments from the company are awaited.