Alpaca Unveils Tokenization Network for US Stocks: Details

US broker-dealer Alpaca has launched its Instant Tokenization Network (ITN), a new service that allows institutions to mint and redeem tokenized US stocks directly. The move, announced Wednesday, is designed to improve onchain liquidity in a corner of the market that has so far faced structural hurdles.

The ITN enables institutions to tokenize entire portfolios with a single API call and redeem tokens in-kind for the underlying shares without settlement delays. Unlike traditional markets that operate on set trading hours, the system is available 24/7, providing constant access to tokenized equities.

By enabling in-kind redemptions—where tokens can be swapped directly for the underlying shares rather than being settled in cash first—Alpaca aims to make tokenized stocks more liquid, efficient, and appealing to large financial players.

Alpaca Building on Regulatory Momentum

The launch follows recent moves by the US Securities and Exchange Commission (SEC) to improve efficiency in crypto-based financial products. The regulator recently approved in-kind creation and redemption for spot Bitcoin and Ether exchange-traded funds (ETFs), a shift that Alpaca is now extending to tokenized equities.

Alpaca has already played a role in building infrastructure for tokenization projects. Its technology supports Ondo Finance’s platform for tokenizing stocks and ETFs, as well as xStocks’ platform for tokenized equities.

The initiative arrives at a time when regulators and Wall Street are increasingly aligned on tokenization. SEC Chair Paul Atkins described tokenization as an “innovation” in remarks delivered in July, reflecting a growing recognition of blockchain’s potential to modernize traditional markets.

Tokenization Gains Ground in 2025

The tokenization of real-world assets has become one of the most prominent investment themes of 2025, with industry data showing more than $31 billion worth of assets now represented onchain. While US Treasury bonds and private credit led the early wave, tokenized stocks are emerging as the next major frontier.

Still, institutional players remain cautious. Many prefer private or controlled blockchain environments that allow them to manage validators, privacy, and execution environments more tightly than retail-focused projects typically permit.

Reports also suggest the SEC is weighing a framework to eventually allow traditional equities to trade on blockchain networks in the same way as cryptocurrencies—an evolution that Alpaca’s ITN appears well-positioned to support.