Brokerage infrastructure provider Alpaca has secured $435m in new funding as it accelerates plans to expand into institutional markets, including hedge funds, market makers and potentially prime brokerage services, according to a report by Bloomberg.
The fintech announced it has raised $135m in equity financing alongside $300m in debt, providing fresh capital to support growth in artificial intelligence-powered trading infrastructure, tokenisation and global market connectivity.
The equity round was led by Peak XV Partners, following Alpaca’s Series D fundraising earlier this year, while the debt financing was provided primarily by Kraken and BMO.
Alpaca currently provides technology that enables digital brokerages in markets including Japan, South Korea and India to offer clients access to US equities, options and cryptocurrency trading. The company now intends to broaden its client base beyond retail-focused platforms by targeting institutional investors, including hedge funds.
The firm’s longer-term strategy includes expanding its trading infrastructure to serve professional market participants through services that could eventually include prime brokerage capabilities.
Artificial intelligence is central to Alpaca’s growth plans, with the company developing technology designed to support AI-driven investment agents capable of executing trades across multiple asset classes.
The company is also investing heavily in tokenisation infrastructure, allowing traditional financial assets such as equities to be represented and traded on blockchain networks. Alpaca operates a US-regulated broker-dealer, giving it direct access to US securities markets and clearing infrastructure.
Expansion has also been supported through acquisitions. The firm recently acquired UK fintech WealthKernel, strengthening its European regulatory footprint, and earlier this year announced the purchase of Indian broker Zincmoney to deepen its presence in Asia.
Despite its international expansion, Alpaca said maintaining compliance with US securities regulation remains a strategic priority as it develops services for larger institutional clients.
