Alpaca’s New Network Rollout

Alpaca has introduced its Instant Tokenization Network (ITN), enabling financial institutions to directly mint and redeem tokenized US stocks, facilitating in-kind settlements and around-the-clock access.

This new system allows entities to utilize a single API call for tokenizing portfolios and redeeming tokens in exchange for the respective shares, eliminating settlement delays and operating outside of traditional trading hours.

By offering in-kind redemptions, where tokens can be exchanged for actual assets rather than settled in cash, the ITN aims to enhance liquidity and efficiency in the market for tokenized stocks.

Alpaca’s initiative aligns with recent actions by the US SEC to remedy inefficiencies in the exchange-traded products (ETP) market, particularly concerning Bitcoin (BTC) and Ether (ETH) ETFs.

Tokenized Stock Market The tokenized stock market is currently valued at over $700 million. Source: RWA.xyz

Arush Sehgal, head of crypto at Alpaca, explained, “ITN’s process can be efficiently understood through its dual functions, including the journaling of securities and the delivery of tokens by the issuer to their authorized participants.”

Alpaca’s infrastructure also supports various tokenization projects, including offerings from Ondo Finance and xStocks.

Trends in Tokenization

The move towards tokenizing real-world assets is becoming one of the most significant investment trends in 2025, with $31 billion worth of assets now accessible through blockchain technology.

In the U.S., there is a growing regulatory support for these initiatives, as SEC Chair Paul Atkins remarked on tokenization’s role as an innovation occurring within the market.

Additionally, the sector is noticing an upward trend in tokenized stocks, further solidifying its importance in the traditional finance landscape. As noted by Rob Hadick, general partner at Dragonfly, such innovations impact traditional financial operations significantly, particularly due to features like 24/7 trading.

Rob Hadick at TOKEN 2049 Rob Hadick discusses with Cointelegraph during TOKEN 2049. Source: Andrew Fenton/Cointelegraph

Despite this progress, Hadick pointed out the caution among institutional investors regarding the use of blockchain with retail-focused projects, emphasizing their desire for control over execution environments and privacy measures.

As this trend evolves, the SEC is also contemplating regulations that could facilitate the trading of traditional equities on blockchain networks akin to cryptocurrencies.