Alpaca Joins JPMorgan and Citadel Securities as US Settlement Hub Starts Tokenizing Stocks

The DTCC service enables firms to convert traditional securities into digital tokens while maintaining ownership rights and investor protections. The tokens represent a pool of securities worth more than $114 trillion, according to the DTCC. Tokenized stocks that pass through Alpaca's network are issued by third parties and generally provide economic exposure without voting or dividend rights, as per the company's risk disclosure.

The launch follows a December 2025 no-action letter from the Securities and Exchange Commission (SEC) and test trades with more than 30 firms in July. The SEC separately approved a Nasdaq pilot in March for trading tokenized Russell 1000 stocks alongside ordinary shares.

Notable Absences

Several prominent firms were not among the initial 20 participants. Kraken, whose xStocks passed $25 billion in cumulative volume within eight months, is on neither list, nor is eToro, which announced tokenized US shares in October 2025. Robinhood, which sells stock tokens in the European Union, is also absent from the launch.

Among the six firms mentioned in the material, three made DTCC's lists, with Alpaca the only one signed up as a participant. Charles Schwab and Interactive Brokers were notably absent from the initial launch, though more firms will join on a rolling basis.

Alpaca's Network

Alpaca joined DTCC's industry working group in May and participated in July test trades, helping partners tokenize SPY and Circle shares held at the depository on the Canton Network and DTCC's private Besu network. The company then redeemed them through its own Instant Tokenization Network, launched in October 2025.

One of Alpaca's backers, Citadel Securities, took part in the $150 million round that valued Alpaca at $1.15 billion in January and also signed up for the DTCC service. The company said several partners now use its network to mint and redeem tokenized US equities.

Future Expansion

Eligible assets at launch include Russell 1000 constituents, ETFs tracking major indices and US Treasury securities. DTCC plans to onboard more participants on a rolling basis and add blockchain networks in 2027, potentially expanding the service's reach and capabilities.

The list of initial participants runs from major financial institutions like J.P. Morgan, Morgan Stanley and UBS to clearing firms Apex Clearing, Clear Street and DriveWealth. Among retail brokers, Fidelity Investments and Edward Jones signed up for the service.