Broker Alpaca has launched its Instant Tokenization Network for institutions, allowing them to tokenize US stocks and redeem them directly without any delays.
Alpaca Launches US Stock Tokenization Network
American broker Alpaca has introduced the Instant Tokenization Network (ITN), a platform that allows institutional investors to tokenize US stock portfolios through a single API request and redeem tokens directly for the underlying assets. Unlike traditional procedures, the network operates 24/7 and without settlement delays.
How ITN Works
The service is based on an in-kind redemption mechanism: tokens are exchanged for real shares without an intermediate stage of cash settlements. This makes the tokenized stock market more liquid and reduces risks. According to Arush Seghal, the head of crypto at Alpaca, the process consists of two steps:
- recording securities between brokerage accounts,
- transfer of tokens by the issuer to an authorized participant, which is usually affiliated with a US financial institution.
The tokenization market is growing
The tokenized stock market currently exceeds $700 million, and the total volume of tokenized real assets in 2025 reached $31 billion. Alpaca already provides infrastructure for Ondo Finance and xStocks, projects working in the field of tokenization of securities.
Regulators and Wall Street support
The launch of ITN comes against the backdrop of a gradual convergence of traditional finance and blockchain. The SEC has already approved an in-kind redemption mechanism for spot ETFs on Bitcoin and Ethereum, and its chairman Paul Atkins called tokenization “innovation.” The next step could be to launch traditional stock trading on the blockchain, modeled after cryptocurrency markets.
Institutional caveats
Dragonfly, a venture capital firm, says institutions are seeking to control the infrastructure, from privacy to the selection of validators. This could slow integration with retail projects, but it could also encourage the development of closed corporate blockchain environments for big players.
Related: Binance launches crypto-as-a-service for banks and exchanges
