Alpaca's Instant Tokenization Network enhances tokenized equity trading

Alpaca: Alpaca is a FINRA-regulated, self-clearing broker-dealer that provides API-driven brokerage infrastructure for stocks, options, and crypto to developers and institutions. It recently expanded into tokenization services as the primary custodian and clearer for tokenized U.S. equities. In the news, Alpaca enables approved participants to perform in-kind conversions between held shares and various issuer tokens on its Instant Tokenization Network without additional settlement cycles. Instant Tokenization Network: Alpaca’s Instant Tokenization Network is the company’s platform for 24/7 in-kind minting and redemption of tokenized equities directly against shares held in brokerage accounts. Launched in 2025, it connects fragmented tokenized markets by allowing seamless redemption of one issuer’s token into shares and re-minting into another. The news highlights how the network solves liquidity and market-making challenges for tokenized equities by leveraging internal ledger transfers at Alpaca. Adoption: Ondo Finance recently integrated Alpaca’s Instant Tokenization Network to enable approved institutions to mint and redeem Ondo Stocks tokens using existing share holdings on Ethereum and BNB Chain. Regulation: In mid-September 2026 the SEC introduced a five-year Innovation Exemption allowing qualifying tokenized securities venues to offer onchain trading of tokenized stocks through permissioned mechanisms while preserving shareholder rights.