Alpaca launches Instant Tokenization Network for US stocks

Alpaca has introduced the Instant Tokenization Network (ITN), enabling institutions to mint and redeem tokenized US stocks directly. This development is aimed at enhancing on-chain liquidity in the tokenization market, which has faced structural barriers. The ITN allows for portfolio tokenization with a single API call and facilitates in-kind settlements, meaning tokens can be directly exchanged for the underlying shares without cash settlement delays. Available to US-regulated financial institutions, the service offers 24/7 access, aligning with the SEC’s push to streamline crypto exchange-traded products. Alpaca's head of crypto highlighted the importance of this new feature, stating it supports two main functions: transferring securities to and from brokerage accounts and delivering tokens to the issuer’s Authorized Participant. The market for tokenized stocks is currently valued over $700 million, with the trend gaining traction, especially as traditional finance explores the advantages of 24/7 trading. However, institutional players remain cautious about sharing blockchain infrastructure with retail projects, prioritizing privacy and control in trading.

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