Three exchange closures announced or underway inside one month deserve more than a roundup. They raise a harder question around the 2026 bear market. Is it breaking the centralized exchange model, or exposing platforms that had already lost the trading activity, regulatory access or financial capacity needed to keep going?
The public record doesn't support one cause for all three.
AscendEX tied its closure to the European Union's Markets in Crypto Assets Regulation, along with financial and operating pressures
BitMart cited its operating conditions, the market environment and future strategy without naming a specific financial or regulatory event
BitMEX said its board acted after a strategic review and separately stated that assets exceeded liabilities. Their timing is shared, but their disclosed circumstances aren't
Lower Volume Hits Unevenly
The bear market is real, and it strikes at the first line of exchange economics. Trading fees rise and fall with activity. CoinGecko found that spot volume across the ten largest centralized exchanges fell 39.1% in the first quarter of 2026. Its second quarter report recorded a further 27.9% decline to US$1.95 trillion. Perpetual futures held up better, although volume still fell 10% from the prior quarter.
The numbers explain the pressure. They don't explain which exchange closes. The declines among leading spot venues ranged from 5% to 56% in the second quarter, while Binance increased its share to 38.7%. A weak market can therefore strengthen the largest venue at the same time it makes a smaller one uneconomic.
BitMEX is the clearest example. It created the perpetual swap product that became central to crypto trading, yet product invention didn't preserve its liquidity. Kaiko data reported by Reuters put BitMEX below 0.01% market share with roughly US$400,000 in daily volume when the closure was announced. Meanwhile, the ten largest centralized perpetual exchanges still processed US$12.7 trillion in the second quarter. The market BitMEX helped create remained huge, while its position inside it had collapsed.
Liquidity has its own impact. Traders prefer deeper order books, tighter spreads and reliable execution. Market makers follow trading activity, then their capital improves execution and attracts more traders. Once that cycle runs in reverse, adding another token, staking programme or interface may not repair the core business.
Licensing And Onchain Trading Tighten The Squeeze
Regulation is decisive when it controls market access. Under the MiCA transition rule, a crypto asset service provider that wasn't authorized by the applicable deadline had to stop serving the market until it received authorization. That deadline arrived on July 1, the same day AscendEX ceased operations.
Authorization also carries an operating load. MiCA requires prudential safeguards, governance, internal controls, business continuity planning and security documentation. ESMA's current custody review reaches into key storage, transaction controls, incident response and service provider dependencies. The cost continues after authorization because firms need people, systems and capital while trading revenue can fall quickly.
Regulation is therefore a filter and one part of the explanation. It directly affected AscendEX. Neither BitMEX nor BitMart identified licensing as the cause of its closure. Tighter rules can force a decision or raise the cost of staying open, while weak economics determine how much room a platform has to absorb that cost. NCFA's comparison of MiCA and UK rules shows why regulation can favour companies with stronger governance and compliance infrastructure.
Onchain exchanges are also taking a larger piece of derivatives trading. CoinGecko's perpetuals data shows that the top decentralized venues averaged US$611.6 billion in monthly volume during the first four months of 2026, up from US$531.7 billion in 2025. Their share of open interest reached 13.5% by the end of April, compared with 3.6% at the start of 2025.
Still, centralized exchanges held 86.5% of open interest. Onchain competition is meaningful, especially for active derivatives traders, but it hasn't replaced the centralized model. It has given traders another place to go just as a falling market makes every lost account more expensive.
What Founders, Investors And Canadian Platforms Should Watch
The closing notices reveal almost as much through their differences as their similarities.
AscendEX paused automated withdrawals and said it couldn't assure customers when requests would be completed or how much would be returned
BitMart set a phased timetable and kept withdrawals open, but its notice didn't disclose revenue, reserves, liabilities or the specific condition that made closure necessary
BitMEX said assets exceeded liabilities and kept withdrawals available, while warning that thin contracts could be settled early
Customers need clear answers about whether their assets are held separately, whether reserves cover liabilities, how open positions will be priced, how quickly withdrawals will be processed and which legal entity is responsible for returning their money.
For founders, exchange businesses needs deep liquidity, active traders who keep coming back, trusted custody and permission to operate in every market it serves. New products and jurisdictions can bring in more revenue, but they also add capital, compliance, security and support costs. Those costs don't disappear when trading activity goes somewhere else.
Investors should watch market share, order book depth, active trader retention, withdrawal performance, reserve and liability reporting, market maker concentration and the status of key licences. Historical user totals can hide a much weaker current business. BitMEX's decline from an industry pioneer to less than 0.01% market share shows just how far activity can fall before an established name finally exits.
Canada uses a different regulatory framework, but the same operating questions apply. Canadian platform rules cover registration, custody and delivery requirements, while Kraken's registration shows the conditions attached to serving Canadian customers. Registration can strengthen oversight and make the rules clearer. It can't remove market, custody or company risk.
So the answer goes beyond “bear market plus regulatory pressure.” Lower prices and weaker trading cut fee revenue. Licensing determines where an exchange can legally operate. Liquidity keeps concentrating around fewer large venues, while onchain platforms compete for active traders. Custody, compliance and security remain expensive throughout. If an exchange loses trading activity, market access or customer confidence, it can run out of room even when the global crypto market remains very large.
Talking Point
When trading volume falls, which exchange numbers tell you whether a platform is temporarily quieter or losing the liquidity, trust and regulatory access it needs to remain viable?
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
Direct participation gives Shakepay more control over how transfers are connected, operated and improved. It can work closer to Interac instead of relying as heavily on another financial institution to provide a service that sits at the centre of its Canadian dollar experience.
Interac says Shakepay serves more than 1.5 million Canadians. Interac e Transfer processed more than 1.6 billion transactions last year.
That makes this less about adding another payment button and more about owning a larger part of the customer relationship.
Shakepay began as a simple way to buy bitcoin. It now offers Canadian dollar balances, e Transfers, card spending, bitcoin rewards and business accounts. Joining Interac directly gives those products a stronger operating base.
Shakepay Is Building Around The Canadian Dollar
Bitcoin remains the hook, but most customers still enter Shakepay through Canadian dollars.
They fund an account, buy an asset, spend from a cash balance or withdraw money to a bank. The better Shakepay handles those steps, the more useful the account becomes before and after a crypto trade.
Its bitcoin rewards strategy follows the same logic. Customers pay merchants in Canadian dollars through established card infrastructure and earn bitcoin afterwards. Merchants don’t have to accept crypto, and customers don’t have to change how they pay.
Interac participation strengthens the other side of that model. Shakepay can connect familiar money movement with bitcoin ownership inside one account.
This is where the company’s strategy becomes more interesting.
A crypto exchange earns activity when customers trade. An everyday financial account can earn attention when they get paid, send money, shop, save or manage a business. Shakepay doesn’t need bitcoin to replace Canadian payment rails. It needs bitcoin to become more useful because those rails are built into the product.
Direct participation doesn’t guarantee faster transfers, higher limits or lower fees. Interac and Shakepay haven’t announced those changes. The value will show up in what Shakepay builds next and whether customers notice a better experience.
From Payments Canada Member To Network Participant
Shakepay became the first crypto focused company to join Payments Canada in May 2025.
Interac participation is a more practical step. Shakepay is now closer to an operating service its customers already use.
Payments Canada membership gives Shakepay a place within the organization that owns and operates Canada’s core clearing and settlement systems
Interac participation gives Shakepay a direct relationship with the network behind a major customer payment service
One opens institutional access. The other can change the product.
Shakepay qualified as a FINTRAC registered money services business and a CIRO regulated investment dealer. Its dealer membership took effect in January 2025, adding national oversight of its investment operations, capital, custody and compliance.
Regulation is becoming part of the competitive stack. It takes time and money, but it also gives fintechs access to infrastructure that was once largely reserved for banks and credit unions.
Canada’s crypto market is splitting along two strategies.
Robinhood bought WonderFi and its Bitbuy and Coinsquare platforms to enter Canada with regulated trading scale. Shakepay remains independent and is extending outward from bitcoin into payments.
One strategy consolidates trading platforms under a global owner. The other tries to turn a Canadian crypto relationship into a broader financial account.
Interac participation gives Shakepay more control, but it also leaves less room to blame an intermediary when payments fail. Fraud controls, outages, customer support and account reliability now carry more strategic weight.
NCFA Perspective
Shakepay has assembled much of an everyday financial account without becoming a bank. Customers can hold Canadian dollars, move money through Interac, spend through a prepaid card and earn bitcoin rewards. Businesses can manage cash and digital assets through the same platform.
The products fit together. Now customers need to use them. More than 1.5 million registered users gives Shakepay reach, but it doesn’t show how many customers maintain balances, route recurring income or use the account every week. Those behavioural actions are beyond account registrations because they determine deposit stability, payment volume and customer lifetime value.
Direct Interac participation improves operating control and reduces reliance on intermediaries. It also gives Shakepay more freedom to design the account around payments, cash and bitcoin. The larger opportunity is to convert a crypto relationship into a primary financial relationship. That depends on whether customers trust Shakepay enough to leave money there and useful enough to return when they aren’t buying bitcoin.
Talking Point
Can Shakepay turn direct Interac access into a primary financial relationship, or will it remain the account Canadians use mainly when they want bitcoin?
NCFA Company Intelligence Snapshot
Shakepay
Canadian bitcoin platform extending into payments, cards and business financial services
Last updated Jul 23, 2026
Company At A Glance
Founded2015
Head OfficeMontreal, Quebec
FoundersJean Amiouny and Roy Breidi
Reported UsersMore than 1.5 million Canadians
OwnershipPrivately held and Canadian owned
Core ProductsBitcoin, ether, cash balances, transfers, cards and rewards
Business OfferCanadian dollar and crypto treasury accounts and transfers
RegulationCIRO investment dealer and FINTRAC registered MSB
Payments CanadaMember since May 2025
Interace Transfer participant since Jul 2026
Milestones
Select a milestone to follow Shakepay’s development from bitcoin trading into everyday finance
1Bitcoin Platform2015
2Series AJan 2022
3CIRO DealerJan 2025
4Payments CanadaMay 2025
5Everyday Account2025–2026
6Direct Interac AccessJul 2026
Milestone 1
Shakepay Starts With A Simple Bitcoin Product (2015)
Jean Amiouny and Roy Breidi founded Shakepay in Montreal. The early product gave Canadians a simpler way to buy and sell bitcoin using Canadian dollars.
Company
ShakepayPrivately held Canadian bitcoin company
Stage
LaunchA focused product enters the Canadian market
CanadaCanadian dollar access supports local adoption
Customers
First Time BuyersEase of use lowers the entry barrier
Competition
Local SimplicityThe product is built around Canadian funding needs
Additional Company Data
Shakepay was founded in Montreal in 2015
Jean Amiouny serves as chief executive officer
The initial offer focused on bitcoin access for Canadians
The company later added ether and Canadian dollar account features
Why This Milestone Matters
Shakepay began with one clear job: make buying bitcoin easier in Canada. That focus built the customer base it is now trying to extend into payments.
Milestone 2
Shakepay Raises C$44 Million For Growth (Jan 2022)
Shakepay raised a C$44 million Series A led by QED Investors. The financing supported hiring, product development and growth as Canadian crypto adoption accelerated.
Company
ShakepayThe company adds institutional investors
Stage
Early ScaleCapital supports a larger team and product
Capital
C$44 MillionSeries A led by QED Investors
Markets
Canadian GrowthThe domestic customer base expands
Customers
Retail UsersMainstream adoption becomes the target
Competition
Funded ChallengerShakepay can invest through a volatile market cycle
Additional Company Data
QED Investors led the Series A
The round valued Shakepay at approximately C$313 million
Previous investors included Boost VC and BoxOne Ventures
The company remained independent after the financing
Why This Milestone Matters
The round gave Shakepay time to build beyond transaction volume. Its larger opportunity became the customer account, not only the trade.
Milestone 3
Shakepay Becomes A CIRO Investment Dealer (Jan 2025)
Shakepay became a CIRO investment dealer member effective January 8, 2025. National dealer oversight strengthened its regulatory position and created a base for deeper payment access.
Company
Shakepay Inc.The regulated dealer operates the investment business
Stage
Regulated ScaleThe company enters national dealer oversight
Capital
Custody ControlsClient assets remain subject to dealer conditions
Markets
CanadaThe approval supports national operations
Customers
Canadian InvestorsInvestment services operate through a regulated dealer
Competition
Access CredentialRegulation supports trust and network eligibility
Additional Company Data
CIRO membership took effect January 8, 2025
Shakepay is also registered with FINTRAC as a money services business
The dealer is registered with Quebec’s Autorité des marchés financiers
Dealer status doesn’t make Shakepay a bank
Why This Milestone Matters
Regulation became an operating asset. It gave Shakepay the standing to pursue infrastructure relationships that aren’t available to an unregulated crypto app.
Milestone 4
Shakepay Joins Payments Canada (May 2025)
Shakepay became the first crypto focused company admitted as a Payments Canada member. Membership brought it into national payment governance and opened the door to deeper system access.
Company
Shakepay Inc.The regulated dealer becomes a member
Stage
Infrastructure EntryShakepay enters payment system governance
Capital
Payment AccessNational infrastructure becomes part of the strategy
Markets
Canadian PaymentsThe company joins banks and regulated fintechs
Customers
Consumers And BusinessesFuture access can improve money movement
Competition
Formal MembershipA crypto company gains a seat at the table
Additional Company Data
Payments Canada announced the membership in May 2025
Shakepay was the first crypto focused member
Membership supports participation discussions but doesn’t grant automatic rail access
Shakepay identified the Real Time Rail as a future opportunity
Why This Milestone Matters
Membership gave Shakepay institutional standing. The commercial value would depend on whether it could turn that standing into actual network access.
Milestone 5
Shakepay Builds More Uses Around The Account (2025–2026)
Shakepay added more ways to hold, transfer and spend money while keeping bitcoin central to the customer experience. Cards, rewards and business services extended the relationship beyond trading.
Company
ShakepayThe product expands around one account
Stage
Product ExpansionTrading connects with spending and transfers
Capital
Customer BalancesCanadian dollars and crypto remain in one platform
Markets
Everyday FinanceShakepay competes for more regular account use
Customers
Consumers And BusinessesThe offer extends beyond retail traders
Competition
Account UtilityPayments create more customer touchpoints
Additional Company Data
Customers can hold Canadian dollars, bitcoin and ether
The prepaid card connects Canadian dollar spending with bitcoin rewards
Shakepay for Business supports treasury balances and transfers
The company reported more than 1.5 million Canadian users
Why This Milestone Matters
A customer may trade only occasionally. Payments and balances give Shakepay more chances to become part of the customer’s regular financial routine.
Milestone 6
Shakepay Joins Interac e Transfer Directly (Jul 2026)
Shakepay joined Interac e Transfer as a participant. It already offered the service, but the direct relationship gives the company more control over payment delivery and future development.
Company
Shakepay And InteracThe platform connects directly with the network
Stage
Direct ParticipationMembership leads to operating access
Capital
Payment ControlShakepay can rely less on intermediaries
Markets
Interac e TransferA service used at national scale
Customers
1.5 Million PlusUsers gain a stronger payment foundation
Competition
Primary AccountThe company competes for more daily activity
Additional Company Data
The announcement was dated July 16, 2026
Interac reported more than 1.6 billion e Transfer transactions last year
Direct participation doesn’t make Shakepay a bank
No immediate fee, limit or processing changes were announced
Why This Milestone Matters
Shakepay now controls more of the connection between Canadian dollars and bitcoin. The next proof point is whether that produces a better and more frequently used account.
Frequently Asked Questions About Shakepay And Interac e Transfer
What changed for Shakepay?
Shakepay became a direct participant in Interac e Transfer. Customers already had access to e Transfers, but Shakepay now has more control over how the service is connected and operated.
Is Shakepay owned by WonderFi or Robinhood?
No. WonderFi owned Bitbuy and Coinsquare and was acquired by Robinhood. Shakepay is a separate privately held Canadian company.
How is this different from joining Payments Canada?
Payments Canada membership brought Shakepay into national payment governance and created eligibility for deeper access. Interac participation connects it directly with a specific operating network.
Does Interac e Transfer send bitcoin?
No. Interac e Transfer moves Canadian dollars. Shakepay customers can then hold, spend, withdraw or convert those funds into supported digital assets.
Does direct participation make Shakepay a bank?
No. Shakepay remains a CIRO regulated investment dealer and FINTRAC registered money services business.
Related NCFA Intelligence
Continue into the payment access, regulation and infrastructure developments affecting Canada’s fintech account market.
The transaction volumes and customer behaviour making direct payment infrastructure more commercially valuable.
Information notice: Company and network figures are identified and attributed where applicable. Product availability, operating features and regulatory treatment may change after the stated update date. This content is provided for informational purposes only and does not constitute investment, financial or legal advice.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: [www.ncfacanada.org](http://www.ncfacanada.org)
GTN will execute trades in the underlying shares, hold them in custody and maintain the records connecting those assets with the tokens in circulation. Its network reaches more than 90 markets, giving Payward access to established brokerage and custody relationships in each country it enters.
Every xStock still starts with a conventional market transaction. A broker buys the referenced share or exchange traded fund, a custodian holds it and Backed Assets (JE) Limited issues the matching token. Redemption reverses the process.
The token can then trade through exchanges, wallets and decentralized applications, including when the underlying stock market is closed. However, that flexibility creates a pricing risk. When the share isn’t trading and direct creation or redemption is unavailable, market makers have to keep the token reasonably close to the underlying asset.
The GTN arrangement is live, although access won’t arrive everywhere at once. Payward says Hong Kong products will begin appearing this week. GTN can distribute xStocks to institutional clients only after securing the required licences.
Payward Can Sell The Same Product Through Competitors
Since then, Payward has added exchanges, wallets, blockchains and professional trading firms. In July 2026, OKX launched more than 40 xStocks for eligible users across several international regions.
OKX competes directly with Kraken. Supplying the same product to a rival exchange shows that Payward wants wide distribution, even when another company owns the customer relationship.
The products now do more than spot trading. Kraken Pro accepts selected xStocks as collateral for eligible margin and futures positions. Professional firms can connect directly to issuance and redemption, while separate perpetual futures provide leveraged exposure to tokenized equity prices.
Payward gained control of the product developer when it acquired Backed Finance. The deal was announced in December 2025 and completed in January 2026.
A planned gateway with Nasdaq could add a second type of product. Current xStocks are certificates created by an unrelated third party. By contrast, Nasdaq intends its proposed equity tokens to involve the public company and preserve the rights attached to the actual security.
Payward could eventually distribute both types through connected services. Investors will need a clear answer on whether each token represents a share, tracks a share or provides derivative exposure to its price.
An xStock Tracks A Share But Doesn’t Make You A Shareholder
Backed Assets (JE) Limited, a Jersey special purpose vehicle, issues the existing xStocks. Legally, the products are bearer debt instruments classified as tracker certificates.
The holder receives economic exposure to a stock or ETF but doesn’t own the referenced company’s shares. That means no voting rights, direct shareholder information rights or residual claim against the company.
The issuer reinvests dividends received on the underlying shares, net of applicable taxes, and adjusts token balances to reflect the additional holdings. It handles stock splits and reverse splits through similar balance changes.
xStocks says dedicated collateral accounts hold the corresponding security for each product. After an issuer default, an independent security agent can take control of those accounts and distribute proceeds under the legal documents.
That protection is useful, but it doesn’t put the holder in the same position as a shareholder. Recovery may come through cash from liquidated collateral rather than delivery of the shares. Custodian failure, broker failure, legal disputes or operating problems could also delay or reduce the amount recovered.
The difference can be seen in Figure’s blockchain common stock. Figure issued company equity through a public securities process. An xStock is a separate certificate tied to a share held elsewhere.
Who Is Competing And How Their Models Differ
GTN and Payward say xStocks now has more than 500 assets, nearly 200,000 holders and more than US$35 billion in transaction volume. These are company reported figures. Trading volume isn’t the same as the value of the tokens currently outstanding, and the public catalogue may not show every asset counted across venues and blockchain networks.
Companies are approaching tokenized equities from several directions.
xStocks uses common token contracts that can circulate through Kraken, third party exchanges, wallets and blockchain applications. Wide distribution is its advantage. The current products don’t provide direct shareholder rights.
Ondo Global Markets offers a large catalogue of tokenized U.S. stocks and ETFs through blockchain networks. It competes on product breadth, onchain access and the amount of tokenized exposure in circulation.
Dinari connects its dShares products with regulated brokerage operations, reserve reporting and shareholder economics. Its offer places more weight on the regulated securities relationship behind each token.
Robinhood controls the customer account, token product and distribution experience. Its European tokenized stock offer is more closed than xStocks, but that control can make pricing, compliance and customer support easier to manage.
Coinbase has sought permission to add tokenized equities in the United States. Its exchange, custody relationships and large customer base would provide immediate distribution if regulators approve the product.
Nasdaq and other established market operators are working on issuer sponsored digital shares that remain close to recognized exchanges, transfer agents and market supervision. Those products may travel less freely, but they are designed to preserve the legal rights attached to the security.
Access Still Depends On Local Rules
xStocks aren’t currently available to retail clients in Canada, the United States or the United Kingdom. The Canadian exclusion is notable because Payward Canada is registered as a restricted dealer. Canadians can use Kraken’s approved crypto platform, but that registration doesn’t authorize xStocks.
GTN gives Payward the brokerage, custody and records needed to add shares from more countries. Even so, local securities rules will decide where those products can actually be sold.
Talking Point
Can Payward scale xStocks across markets and product types without blurring the difference between owning a share and tracking one?
NCFA Company Intelligence Snapshot
Payward / xStocks
Tokenized equity products connecting traditional share custody with exchanges, wallets and blockchain markets
Last updated Jul 22, 2026
Company At A Glance
LaunchedJun 30, 2025
DeveloperPayward, parent company of Kraken
IssuerBacked Assets (JE) Limited, Jersey
StructureTracker certificates backed by referenced shares or ETFs
OwnershipPayward completed its acquisition of Backed Finance in Jan 2026
Primary MarketKYC, approved wallets and US$5,000 minimum for direct issuance or redemption
DistributionKraken, third party exchanges, wallets and DeFi applications
NetworksEthereum, Solana and other supported blockchain networks
Reported ScaleUS$35B+ transaction volume and nearly 200,000 holders
CanadaNot currently available to Canadian retail clients
Milestones
Select a milestone to follow the development of Payward and xStocks
1LaunchJun 2025
2Open DistributionAug–Dec 2025
3Backed AcquisitionDec 2025–Jan 2026
4Trading ConnectionMar 2026
5Nasdaq GatewayMar 2026
6Collateral And IPOsJun–Jul 2026
7Third Party ScaleJul 2026
8International MarketsJul 2026
Milestone 1
xStocks Launches With Tokenized U.S. Equities (Jun 2025)
Kraken launched 60 xStocks for eligible clients outside the United States on June 30, 2025. Backed supplied the issuance structure, while Kraken provided the first large distribution channel and customer interface.
Company
Kraken And BackedThe exchange and tokenization provider launch xStocks together
Stage
Commercial LaunchTokenized U.S. stocks and ETFs enter live distribution
Capital
Asset BackedEach token is supported by the corresponding underlying security
Markets
Non U.S. ClientsThe rollout begins outside the United States
Customers
Kraken UsersEligible clients gain fractional equity exposure through a crypto account
Competition
Portable TokensWithdrawal to self custody distinguishes the product from a closed broker balance
Additional Company Data
The public launch began with 60 U.S. stocks and ETFs
Backed Assets (JE) Limited issued the tracker certificates
Payward Digital Solutions Ltd. provided access to eligible Kraken clients
Solana was the initial blockchain network
NCFA Perspective
Tokens that can leave the exchange are easier for other platforms to support. That portability gave xStocks a route beyond Kraken from the start.
Milestone 2
xStocks Expands Across Chains And Platforms (Aug–Dec 2025)
xStocks extended beyond Solana to additional blockchain networks, exchanges and wallets. Alpaca also became a preferred venue for sourcing and holding the U.S. shares backing the products.
Company
xStocks AllianceExchanges, wallets and blockchain partners support the product
Stage
Network DistributionThe product extends beyond one exchange and one chain
Capital
Custodied SharesAlpaca sources and holds underlying U.S. equities
Markets
Global DistributionEligible users gain access through several platforms and networks
Customers
Exchange And Wallet UsersCustomers can reach the same products through different interfaces
Competition
Common ProductShared token contracts compete with platform specific products
Additional Company Data
Ethereum support launched in September 2025
Further integrations expanded blockchain and self custody distribution
EU access began through a separately regulated Payward entity
Alpaca supported brokerage, custody and institutional connections
NCFA Perspective
Payward didn’t need to own every customer account. One issuer and common token contracts could support distribution through several companies.
Backed announced that it would join Kraken in December 2025. Payward completed the acquisition in January 2026, bringing the developer of xStocks inside the same corporate group as its largest distributor.
Company
Payward And BackedThe distributor acquires the product developer
Stage
Vertical IntegrationDevelopment and distribution come under common ownership
Capital
AcquisitionPurchase consideration was not publicly disclosed
Markets
Payward GroupxStocks joins a larger global financial services company
Customers
Retail And B2BPayward can serve Kraken and outside distributors
Competition
Owned Tokenization CapabilityPayward controls a core product function
Additional Company Data
Backed Finance was founded in 2021
Backed Assets (JE) Limited remains the named issuer
The acquisition closed in January 2026
Payward can develop xStocks for Kraken and other distributors
NCFA Perspective
Payward brought an important supplier inside the company. It could now set product priorities without depending on an outside tokenization partner.
Milestone 4
xChange Connects Traditional Liquidity With Onchain Settlement (Mar 2026)
xStocks introduced xChange as an atomic request for quote service. Approved clients can issue or redeem tokens against stablecoins in one onchain transaction while prices remain connected with traditional equity markets.
Company
xStocksApproved firms gain a direct trading connection
Stage
Professional TradingIssuance and redemption become programmable and atomic
Capital
Atomic SettlementBoth sides transfer together or neither side settles
Markets
Ethereum And SolanaInitial support connects two major blockchain markets
Customers
Market Makers And InstitutionsApproved counterparties gain primary market access
Competition
Price AlignmentCreation and redemption help align tokens with the shares
Additional Company Data
xChange uses a request for quote model
Settlement is atomic and occurs onchain
Direct clients must complete issuer onboarding
The service complements exchange and DeFi liquidity
NCFA Perspective
Professional firms need an efficient way to create, redeem and arbitrage the tokens. Without that connection, secondary prices can drift away from the shares they track.
Milestone 5
Payward And Nasdaq Plan An Equity Token Gateway (Mar 2026)
Payward and Nasdaq agreed to develop a gateway connecting Nasdaq’s planned issuer sponsored equity tokens with permissionless blockchain markets through xStocks technology.
Company
Payward And NasdaqA crypto company works with an established exchange operator
Stage
Regulated Market GatewayThe planned service joins regulated issuance with open networks
Capital
Issuer Sponsored EquityTokens are intended to retain the rights of the security
Markets
Eligible JurisdictionsOperation remains subject to approval and completion
Customers
Issuers And InvestorsPublic companies could reach blockchain investors
Competition
Shareholder RightsThe model addresses a limitation of tracker certificates
Additional Company Data
The partnership was announced March 9, 2026
Nasdaq Equity Tokens are intended to preserve governance and market protections
xStocks would provide the blockchain connection
The gateway is expected in the first half of 2027, subject to approval and completion
NCFA Perspective
Nasdaq could give Payward a role in digital shares with shareholder rights. Product labels and disclosures will have to keep those shares separate from tracker certificates.
Milestone 6
xStocks Adds IPO Access, Derivatives And Collateral (Jun–Jul 2026)
Payward extended xStocks beyond spot trading. Planned IPO allocations, tokenized equity futures and eligible collateral use gave the products more roles inside trading and investment accounts.
Company
Payward ServicesxStocks joins a wider B2B product set
Stage
Product ExpansionThe tokens gain uses beyond buying and selling
Capital
Collateral UtilitySelected xStocks can support eligible leveraged trading
Markets
Global Eligible MarketsAvailability varies by product and jurisdiction
Customers
Retail And Professional TradersDifferent products serve investing, hedging and trading
Competition
Connected Product SetSpot tokens connect with derivatives, collateral and allocations
Additional Company Data
Payward announced planned tokenized U.S. IPO access in June 2026
Selected Alliance members may distribute IPO allocations to eligible clients
xStocks perpetual futures provide derivative exposure
Collateral use is subject to haircuts and account limits
NCFA Perspective
Collateral and derivatives make the tokens more useful to active traders. They also increase the cost of poor liquidity, bad pricing or unclear risk controls.
Milestone 7
OKX Launches More Than 40 xStocks (Jul 2026)
OKX launched more than 40 tokenized U.S. stocks and ETFs powered by xStocks on July 16, 2026. The launch gave a major third party exchange its own customer facing xStocks offer.
Company
xStocks And OKXA competing exchange adopts the Payward product
Stage
External ScaleDistribution extends through another global platform
Capital
Common Token ContractsThe same tokens can trade across several venues
Markets
Asia, CIS, MENA And TürkiyeEligible regional customers receive access through OKX
Customers
OKX UsersCrypto traders gain equity exposure inside an existing account
Competition
Product SupplierPayward supplies a company that competes with Kraken
Additional Company Data
OKX launched more than 40 xStocks against USDT
Users can trade through an order book or direct interface
xChange had already been integrated into OKX DEX
Commercial terms were not disclosed
NCFA Perspective
Payward chose wider distribution over a Kraken exclusive. The commercial test is whether the same tokens can attract enough liquidity across separate exchanges.
Milestone 8
GTN Adds International Execution And Custody (Jul 2026)
GTN and Payward partnered on July 22, 2026, to extend xStocks beyond U.S. securities. GTN will provide execution, custody, ledgering and record keeping for the traditional assets underneath the new products.
Company
Payward And GTNToken distribution connects with international market services
Stage
International ExpansionThe product begins adding shares listed outside the United States
Capital
Underlying Asset SupportGTN handles execution, custody and asset records
Markets
Hong Kong FirstUK, European and South Korean assets are planned
Customers
Retail And Institutional ChannelsGTN prepares institutional distribution while existing venues continue
Competition
International Asset BreadthOne product family extends across more national markets
Additional Company Data
GTN connects with more than 90 markets
The partnership is live at the operating level
GTN distribution remains subject to required licences
The agreement may later support other asset classes
NCFA Perspective
GTN gives Payward the brokerage, custody and records needed to add shares from more countries. Success will depend on local approval, reliable market makers and clear ownership disclosures.
Frequently Asked Questions About xStocks
What are xStocks?
xStocks are tokenized tracker certificates that provide economic exposure to listed shares and ETFs. Backed Assets (JE) Limited issues the current products and holds corresponding traditional securities as collateral.
Does an xStock make the holder a shareholder?
No. An xStock holder doesn’t own the referenced company’s shares and receives no voting rights, direct shareholder information rights or residual claim against that company.
What does GTN provide to xStocks?
GTN will execute trades in the international shares, hold those assets in custody and maintain the ledgering, record keeping and sub accounting needed to support the tokens. Hong Kong comes first, with UK, European and South Korean assets planned.
How are xStocks backed?
xStocks says each product is backed by the corresponding share or ETF in dedicated collateral accounts. An independent security agent can take control of those accounts after an issuer default, although recovery may involve selling the collateral rather than delivering shares to tokenholders.
Where can xStocks be traded?
Eligible users can access xStocks through Kraken and participating third party exchanges, wallets and blockchain applications. Availability, trading hours, liquidity and product selection differ by venue and country.
Are xStocks available in Canada?
No. xStocks aren’t currently available to Canadian retail clients. Payward Canada’s restricted dealer registration allows Kraken to offer approved crypto services in Canada, but it doesn’t authorize xStocks.
How are xStocks different from Nasdaq’s planned equity tokens?
Current xStocks are third party tracker certificates. Nasdaq’s proposed tokens are intended to involve the public company and preserve the governance and investor rights attached to the actual security.
Related NCFA Intelligence
Continue into the market, regulatory and settlement developments affecting tokenized securities beyond xStocks.
Europe’s approach to connecting tokenized securities with central bank money and regulated wholesale market operations.
Information notice: Company figures are identified and attributed where applicable. Product availability and legal treatment vary by jurisdiction and may change after the stated update date. This content is provided for informational purposes only and does not constitute investment, financial or legal advice.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
Netcoins is the first Canadian platform to go live on the infrastructure. The rollout builds on an existing relationship rather than starting from zero. BIGG Digital Assets invested in APX and announced the Netcoins partnership in May 2025, and Netcoins later added an in app lending page and calculator while the companies worked toward full integration.
The new launch turns APX’s securities law relief into infrastructure another Canadian platform can distribute. APX can now place its lending system behind a partner’s customer relationship rather than relying only on borrowers who arrive through its own channel.
Netcoins Keeps The Customer While APX Runs The Loan
Netcoins brings the app, customer relationship and regulated crypto trading channel. Netcoins became one of Canada’s early restricted dealer crypto platforms in 2021. It is owned by publicly traded BIGG Digital Assets, which combines Netcoins with blockchain analytics and compliance technology under a compliance first operating model.
APX runs the lending operation behind the interface. It supplies capital, reviews each application, performs the required account appropriateness assessment, manages collateral, handles servicing and monitors loan to value levels around the clock. APX or a wholly owned special purpose vehicle remains the lender under the loan agreement.
The partnership lets Netcoins add credit without creating its own lending balance sheet, underwriting team or collateral controls. APX gains distribution through an established Canadian platform, while Netcoins can add a new revenue line and give customers another reason to keep assets inside its ecosystem.
The model resembles other forms of embedded lending infrastructure, but the collateral is digital. The customer sees a loan inside a familiar platform even though a specialist provider operates the credit system behind it.
Collateral Rules Matter More Than A Fast Application
Netcoins’ lending page currently shows loans starting at C$10,000 or USDC 10,000, using Bitcoin or Ether as collateral. Terms can run for up to 60 months, and the displayed interest rate starts at 12.99%. Final terms and eligibility are determined during APX’s application process.
Borrowers can access Canadian dollars or USDC without a conventional credit check, but the loan is secured by crypto. If the collateral value falls, the loan to value ratio rises. APX can require more collateral or partial repayment and may liquidate assets when the applicable threshold is reached.
The April 2025 OSC decision permits APX to accept Bitcoin and Ether unless the principal regulator approves another asset. It also requires client disclosures, account appropriateness reviews and third party custody controls. The relief is time limited, expires three years after the decision and should not be treated as a general precedent for other lenders.
APX says collateral is held in segregated BitGo Trust cold storage, remains visible on chain and is not pooled, re-lent or rehypothecated. Customers should still understand that crypto collateral is not protected by the Canadian Investor Protection Fund and can be sold if the loan breaches its terms.
Competition Now Includes The Lending Layer
Netcoins adds crypto backed credit to trading, custody, staking and card products without building a lending operation internally.
Ledn operates a specialist Bitcoin backed lending business and has connected crypto loans with institutional funding markets.
Canadian crypto platforms that focus mainly on trading and custody may now need to decide whether lending belongs in their product mix.
Banks and fintechs could eventually use similar infrastructure if they want to offer digital asset secured credit without holding or operating the full crypto lending stack.
A Shared Interface Doesn't Remove Shared Responsibility
The commercial appeal is clear, but do users understand who is doing what?
Netcoins controls the experience, but APX approves and services the loan. Customers need clear information about the lender, collateral transfer, interest costs, margin notices, liquidation rules, data sharing and complaint handling before they apply.
Andrei Poliakov has followed this compliance first approach before. In a 2019 NCFA interview with Coinberry, he described the goal of building a trusted Canadian crypto business with supportive banking and long term operating discipline.
Coinberry was later acquired by WonderFi for C$38.5 million as regulatory costs encouraged consolidation. APX applies that experience to shared infrastructure that several platforms may be able to use rather than each one building a separate lending operation.
If the model performs well, APX could become a common lending layer behind several crypto platforms. If servicing, disclosures or liquidations create friction, the platform presenting the loan will share the reputational cost.
Talking Point
Will APX become the lending layer behind several Canadian crypto platforms, or will larger exchanges eventually build or acquire their own credit infrastructure?
NCFA Company Intelligence Snapshot
APX Lending
Regulated crypto backed lending and partner infrastructure for digital asset platforms
Last updated Jul 21, 2026
Company At A Glance
Founded2023 by Andrei Poliakov
HeadquartersToronto, Canada
StatusPrivate
Regulatory StructureTime limited securities law relief issued Apr 1, 2025
ProductsDirect crypto backed loans, private client lending and Lending as a Service
CollateralBitcoin and Ether in Canada
Loan CurrencyCanadian dollars and USDC
Funding CapacityC$20M accordion credit facility announced Oct 2025
CustodySegregated BitGo Trust cold storage
Milestones
Select a milestone to follow APX Lending’s development
1Formation2023
2US Expansion2024
3Regulatory ReliefApr 2025
4BIGG InvestmentMay 2025
5Credit FacilityOct 2025
6Embedded LaunchJul 2026
Milestone 1
APX Lending Is Founded (2023)
Andrei Poliakov founded APX Lending in 2023 after helping build Coinberry, one of Canada’s early regulated crypto trading platforms. APX focused on secured credit that lets borrowers access liquidity without selling Bitcoin or Ether.
Company
APX LendingCrypto backed lending built around regulated infrastructure
Stage
FormationA new lender develops after the Coinberry operating experience
Capital
Private FundingEarly financing details not publicly disclosed
Markets
CanadaA compliance first route into digital asset credit
Customers
Crypto HoldersIndividuals and businesses seeking liquidity without selling
Competition
Custody First LendingSegregated collateral and no rehypothecation
Additional Company Data
Poliakov previously co-founded and led Coinberry
The first product focused on loans secured by digital assets
APX developed proprietary loan and collateral management technology
Revenue and early funding remain private
NCFA Perspective
APX began with a founder who had already worked through Canadian crypto compliance, banking and custody challenges. The new company applied that experience to lending rather than another trading platform.
Milestone 2
US Lending And Netcoins Partnership Begin (2024)
APX expanded into the United States and signed a partnership with Netcoins USA. The companies began coordinating crypto backed lending and trading services before the Canadian embedded product was available.
Company
APX USThe lender extends beyond its Canadian base
Stage
Market ExpansionUS operations and partner distribution develop
Capital
Growth FundingExpansion capital not publicly separated by market
Markets
United StatesSelected state availability and institutional demand
Customers
Retail And BusinessBorrowers using crypto to secure liquidity
Competition
Cross Border ReachCanadian operating experience applied in a larger market
Additional Company Data
Netcoins USA announced an APX partnership in October 2024
The agreement combined preferred lending and trading access
APX reported more than US$100 million in prospective borrower interest after entering the US
The Canadian product still required a separate regulatory route
NCFA Perspective
The early Netcoins relationship shows that the 2026 Canadian launch came from a longer distribution strategy. APX was testing how lending and trading platforms could complement each other before full embedded infrastructure went live.
Milestone 3
Canadian Securities Law Relief Is Granted (Apr 2025)
The OSC granted APX time limited relief from dealer registration and prospectus requirements, with passport relief across Canada. The decision created a regulated framework for loans secured by Bitcoin or Ether.
Company
APX Inc.The Canadian lending entity covered by the decision
Stage
Regulatory ApprovalA time limited operating framework is established
Capital
Secured LendingLoans funded by APX or wholly owned SPVs
Markets
Across CanadaSubject to applicable provincial lending requirements
Customers
Individuals And BusinessesBorrowers complete an account appropriateness assessment
Competition
First Mover FrameworkThe decision is tailored to APX and is not a general precedent
Additional Company Data
The decision was issued April 1, 2025
Bitcoin and Ether are the approved collateral assets
At least 95% of qualifying collateral must generally remain with an acceptable third party custodian
The relief expires three years after the decision unless amended
NCFA Perspective
The order did more than permit a direct lending product. It created the compliance base APX later used to build lending infrastructure for other Canadian platforms.
Milestone 4
BIGG Invests And Netcoins Partnership Forms (May 2025)
BIGG Digital Assets invested in APX and connected the lender with Netcoins. The agreement paired APX’s secured credit operation with a regulated Canadian crypto distribution platform.
Company
APX And NetcoinsLending infrastructure meets regulated platform distribution
Stage
Strategic PartnershipInvestment and product planning begin
Capital
BIGG InvestmentInvestment amount not publicly disclosed
Markets
Canada And USCoordinated market development across both countries
Customers
Netcoins UsersTrading clients become a future lending audience
Competition
Platform DistributionAPX expands beyond direct customer acquisition
Additional Company Data
BIGG announced the investment on May 13, 2025
Netcoins is wholly owned by BIGG Digital Assets
The partnership followed APX’s April regulatory decision
Coordinated go to market activity was planned before full integration
NCFA Perspective
The investment aligned APX with both capital and distribution. Netcoins had an economic reason to help the lending product succeed before the infrastructure was fully embedded.
APX secured a C$20 million accordion credit facility from Cypress Hills. The facility increased the capital available for Canadian crypto backed loans and future partner programs.
Balance Sheet ScaleMore loans can be supported without relying only on equity
Capital
C$20M FacilityAccordion structure from Cypress Hills
Markets
CanadaFunding supports domestic loan growth
Customers
Retail And InstitutionalDirect borrowers and partner distributed loans
Competition
Funding CapacityReliable capital becomes part of the partner proposition
Additional Company Data
Cypress Hills is a private credit investment firm
The accordion structure can increase capacity under agreed conditions
Pricing, maturity and detailed covenants were not publicly disclosed
APX continued developing white label infrastructure during this period
NCFA Perspective
Embedded credit needs dependable capital as well as software. The facility strengthened APX’s ability to promise partners that approved loans could actually be funded.
Milestone 6
Netcoins Launches On APX Lending Infrastructure (Jul 2026)
APX launched its Canadian Lending as a Service platform with Netcoins on July 21, 2026. Eligible users can access crypto backed loans through the Netcoins app while APX runs the lending operation behind the experience.
Company
APX Lending as a ServicePartner branded crypto backed credit infrastructure
Stage
Commercial LaunchThe first Canadian platform goes live
Capital
APX SuppliedAPX provides the lending capital behind the program
Markets
CanadaRollout begins for eligible Netcoins users
Customers
Netcoins UsersBorrowers access liquidity without selling BTC or ETH
Competition
Embedded Credit LayerOther platforms can add lending without becoming lenders
Additional Company Data
Netcoins is the first Canadian platform live on the partner infrastructure
APX supplies underwriting, compliance, collateral management, technology and servicing
Loan terms and eligibility are provided during the APX application process
Commercial economics between APX and Netcoins were not disclosed
NCFA Perspective
The launch turns APX from a specialist lender into shared market infrastructure. The next test is whether other Canadian platforms adopt the same lending layer or build competing systems.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
July 16, 2026 | NCFA Market Activity | Capital Markets And Market Infrastructure, Artificial Intelligence And Data, Digital Assets
Alpaca Takes On More Of The Brokerage Business
On July 16, 2026, Alpaca raised US$135 million in new equity led by Peak XV, with participation from Elefund, Opera Tech Ventures and Unbound.
The announced financing totals US$435 million, including debt financing primarily from Payward, the parent company of Kraken, and BMO. Alpaca didn’t disclose how that debt was structured or allocated between the lenders.
The financing reflects a larger change inside the company. Alpaca started by helping developers connect applications to U.S. brokerage accounts. It now clears more trades itself, holds securities in custody, operates regulated businesses in several markets and supports companies offering tokenized stocks.
That business needs more than product capital. Brokers need liquidity, regulatory capital and operations that can settle trades and protect customer assets during volatile markets.
Brokerage Growth Requires More Capital
A software company can add customers without holding their assets or settling their trades. A broker cannot.
Alpaca clears U.S. equities through the Depository Trust & Clearing Corporation. It has also secured memberships with the Options Clearing Corporation and Fixed Income Clearing Corporation and joined Nasdaq.
Those connections reduce its reliance on outside clearing brokers and give Alpaca more control over execution, settlement and the economics attached to each account. They also bring higher capital, liquidity and operating requirements.
The lenders fit that business. Payward brings Kraken’s digital asset market experience and an existing Nasdaq tokenization partnership. BMO brings a global banking and capital markets balance sheet and is already working with CME Group and Google Cloud on tokenized cash for margin and settlement.
Both are financing a broker that connects conventional securities with tokenized markets.
Alpaca Brings Clearing And Custody In House
Alpaca’s first pitch was simple. A fintech could add investing without becoming a broker.
The company now supports stocks, ETFs, options, fixed income and crypto for more than 300 fintech and institutional partners across more than 40 countries. It reported more than 9 million brokerage accounts in January 2026.
Self clearing, custody, securities lending, cash products and wider market access let Alpaca handle more of each account relationship. That can improve product flexibility and give the company access to more of the revenue generated after an account opens.
Its international expansion follows the same pattern. The WealthKernel acquisition added regulated brokerage and custody businesses in the United Kingdom and Europe. Alpaca later completed passporting across the European Economic Area and began adding European equities. In India, it acquired an IFSCA regulated broker dealer and payment service provider in GIFT City.
Alpaca is buying regulated market access rather than trying to export one U.S. brokerage model everywhere.
That can simplify expansion for its partners. It also leaves Alpaca managing different legal entities, customer protections and operating requirements across jurisdictions.
The company says revenue has doubled annually for three consecutive years. Revenue, profitability and product level economics remain private.
Tokenized Stocks Still Need Brokers And Custodians
Alpaca says it now holds more than US$1.5 billion in assets backing tokenized U.S. stocks and ETFs.
Alpaca doesn't issue those tokens. It holds the underlying securities while other companies create digital representations for their own platforms. The rights attached to each token depend on its issuer and legal structure.
Tokenized stocks therefore do not remove brokerage, custody or corporate actions. Someone still has to hold the shares, settle transactions and reconcile the token with the underlying asset.
That is Alpaca’s commercial role. Its Instant Tokenization Network connects custody with minting, redemption and liquidity across token issuers and trading venues.
The same model is entering regulated markets. Nasdaq’s tokenized stock proposal retains exchange trading and clearing while adding a tokenized representation.
Alpaca is also making brokerage functions easier for software to use directly. Its command line interface exposes 108 functions covering orders, accounts, positions, market data and crypto. The company also offers an MCP server and an AI agent skills library.
Brokerage APIs are not new. What is changing is how much of the workflow software can complete before a person intervenes.
A financial institution can allow software to retrieve account information, assess opportunities and prepare or submit orders. The institution still sets permissions, limits, approvals and exception rules. Responsibility for the trade remains with the firm and account owner.
Alpaca says monthly active API users nearly quadrupled during the six months before the financing. It hasn't disclosed the starting number or how much of that activity came from AI agents rather than conventional algorithmic trading.
The tools are available. Institutions will decide how much authority to give them.
Canadian Firms Are Already Using Parts Of The Model
Alpaca already supports a Canadian use case through Manzil’s embedded brokerage launch. Manzil owns the customer proposition while Alpaca provides U.S. brokerage accounts, custody, clearing and fractional share access. That arrangement lets a Canadian fintech build for a defined customer segment without becoming a U.S. broker dealer.
BMO’s financing participation adds an institutional connection. The bank is backing a company that holds securities behind tokenized equities and is taking on more clearing and custody work.
Payward adds another Canadian connection through Kraken. Kraken operates nationally through Payward Canada’s restricted dealer registration, while its parent company is also working with Nasdaq on tokenization.
Canada has broker dealers, custodians, wealth platforms and digital asset firms. Few combine developer brokerage APIs, self clearing, tokenized equity custody and regulated businesses across several markets.
Alpaca shows Canadian firms what a more integrated brokerage business can look like. The practical decision is which functions to own and which to source from a specialist.
Alpaca Expands Beyond Brokerage APIs
Alpaca started by helping developers connect to a broker. Today it is taking on more of the brokerage itself.
The company clears trades, holds securities, operates regulated businesses across several jurisdictions and supports tokenized stock platforms. Its AI tools extend those same functions to software.
The latest financing belongs in that progression. The Company Intelligence Snapshot below shows how Alpaca added those capabilities and where the new equity and debt fit.
Talking Point
How much of the brokerage business can Alpaca bring under one company before regulatory and operating complexity begins to offset the advantage?
NCFA Company Intelligence Snapshot
Alpaca
Brokerage APIs, clearing and custody for fintechs, institutions and tokenized markets
Last updated Jul 16, 2026
Company At A Glance
Founded2015 by Yoshi Yokokawa and Hitoshi Harada
HeadquartersSan Francisco, United States
StatusPrivate
Capital / FundingUS$135M equity; US$435M total financing announced Jul 2026
Latest ValuationUS$1.15B at the Jan 2026 Series D
ProductsBrokerage APIs, trading APIs, clearing, custody, tokenization and market access
PartnersMore than 300 fintech and institutional partners
AccountsMore than 9 million brokerage accounts reported in Jan 2026
MarketsMore than 40 countries, with regulated entities in the United States, United Kingdom, Europe and India
Milestones
Select a milestone to follow Alpaca’s development
1Launch2015–2019
2Embedded Brokerage2020–2024
3Clearing And CustodyAug–Oct 2025
4Tokenized StocksSep–Dec 2025
5Global BrokerageApr–Jul 2026
6Agent First FinancingApr–Jul 2026
Milestone 1
Developer Brokerage Launch (2015–2019)
Yoshi Yokokawa and Hitoshi Harada founded Alpaca in 2015. The company began with market data and machine learning tools, then built a commission free brokerage API that developers could use for algorithmic trading.
Company
AlpacaDBFounded by Yoshi Yokokawa and Hitoshi Harada
Stage
LaunchDeveloper trading and brokerage APIs
Capital
Early VentureMore than US$6 million reported by the 2018 API launch
Markets
United StatesU.S. equities and algorithmic trading
Customers
DevelopersAlgorithmic traders and financial application builders
Competition
API AccessBrokerage functions exposed through developer tools
Additional Company Data
Y Combinator Winter 2019 company
Early products included market data and algorithmic trading tools
Alpaca Securities became the regulated U.S. brokerage entity
The first brokerage proposition focused on direct API access
NCFA Perspective
Alpaca entered brokerage through developers rather than a consumer trading app. That distribution choice later gave financial companies a way to build their own investing products on the same brokerage connection.
Milestone 2
Embedded Brokerage Scale (2020–2024)
Alpaca expanded from trading APIs into brokerage services that fintechs and institutions could place inside their own products. Partners controlled the customer experience while Alpaca provided account opening, execution and custody.
Company
Broker APIEmbedded investing for financial companies
Stage
ScaleDistribution through partner products
Capital
Growth FundingVenture rounds funded product and international expansion
Markets
InternationalPartners began serving users outside the United States
Customers
Fintechs And InstitutionsCompanies embedding investing into their own services
Competition
Embedded BrokeragePartners avoid building a broker from scratch
Additional Company Data
Broker API added account opening, trading and custody workflows
Asset access expanded beyond U.S. equities
Partner distribution became the main route to end customers
Canadian fintech Manzil later used Alpaca for embedded U.S. stock trading
NCFA Perspective
Embedded brokerage changed Alpaca from a developer trading tool into a business service. Each partner brought customers, assets and trading activity without Alpaca needing to own the retail brand.
Milestone 3
Clearing And Custody Expansion (Aug–Oct 2025)
Alpaca added OCC and FICC memberships to its existing DTCC clearing status, then became a Nasdaq member. The company could handle more of the trade from execution through settlement without relying on outside clearing brokers.
Company
Alpaca SecuritiesU.S. self clearing broker dealer
Stage
Self ClearingMore brokerage functions brought in house
Capital
Balance Sheet UseClearing and custody increase capital and liquidity requirements
Markets
U.S. Capital MarketsEquities, options and U.S. Treasuries
Customers
Global PartnersFintech and institutional brokerage clients
Competition
More ControlLess dependence on third party clearing brokers
Additional Company Data
DTCC clearing for U.S. equities
OCC membership for listed options
FICC membership for U.S. government securities
Nasdaq membership provides direct exchange access
NCFA Perspective
Self clearing gave Alpaca more control over product design, trade processing and account economics. It also increased the capital and operating burden behind every partner relationship.
Milestone 4
Tokenized Stock Custody (Sep–Dec 2025)
Alpaca worked with tokenization providers and launched its Instant Tokenization Network. Its brokerage entities held the underlying securities while partners issued digital representations for their own markets.
Company
Instant Tokenization NetworkCustody, minting and redemption connections
Company reported more than 94% share of tokenized U.S. stocks and ETFs in late 2025
The market share estimate used company and partner data
Alpaca did not necessarily issue the tokens
Token holder rights depend on each issuer and legal structure
NCFA Perspective
Tokenized stocks created a new distribution channel for Alpaca’s existing brokerage work. The business value came from custody, reconciliation and transaction support rather than token issuance alone.
Milestone 5
Global Regulated Brokerage (Apr–Jul 2026)
Alpaca completed acquisitions that added regulated brokerage and custody businesses in the United Kingdom, Europe and India. It also completed EEA passporting and began adding European equities.
Company
Global Regulated GroupLocal brokerage entities under Alpaca
Stage
International ExpansionRegulated access acquired across major regions
Capital
Acquisition FundingCapital supports licences, integration and local operations
Markets
UK, EEA And IndiaEEA passporting across all 30 countries
Customers
Global Financial CompaniesPartners seeking local market access
Competition
Regulated ReachLocal entities replace a single exported U.S. model
Additional Company Data
WealthKernel added UK and European brokerage and custody operations
European equity access began with Germany’s Xetra market
Zincmoney IFSC added a regulated broker dealer and payment service provider in GIFT City
Local entities create added compliance and operating complexity
NCFA Perspective
Alpaca bought regulated access instead of treating international growth as a sales exercise. That can simplify expansion for partners, but the company must run different legal and operating requirements behind one product experience.
Milestone 6
Agent First Brokerage Financing (Apr–Jul 2026)
Alpaca released a command line interface, MCP tools and an AI agent skills library, then announced US$135 million in equity within a US$435 million financing package. Debt financing came primarily from Payward, Kraken’s parent company, and BMO.
Company
AlpacaBrokerage functions available to developers, institutions and software agents
Stage
Agent First ExpansionStructured brokerage access for software workflows
Capital
US$435MUS$135 million equity plus debt primarily from Payward and BMO
Markets
GlobalTraditional, tokenized and software initiated trading
Customers
300+ PartnersFintechs, banks, wealth firms, trading companies and crypto platforms
Competition
Broader Brokerage RoleClearing, custody, market access and software interfaces under one company
Additional Company Data
Command line interface exposes 108 brokerage and market data functions
Monthly active API users nearly quadrupled over the prior six months, according to Alpaca
The company did not disclose debt allocation, pricing, security or covenants
Revenue doubled annually for three consecutive years, according to Alpaca; revenue and profitability remain private
NCFA Perspective
The financing supports a larger brokerage business, not only new AI tools. Alpaca now has to coordinate clearing, custody, regulated entities, tokenized stocks and software access without letting the operating burden weaken the partner proposition.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
Jul 16, 2026 | NCFA Resource | Digital Assets, Capital Markets And Market Infrastructure
Institutional Adoption, Hybrid Infrastructure, And Readiness
On July 16, 2026, Broadridge released its Tokenization Pulse Study, a survey of 200 senior financial services decision makers in Canada and the United States. The report examines adoption, investment, operating models, asset class priorities, and the practical barriers institutions face as tokenized assets enter production.
The findings show strong institutional interest with a wide gap between strategy and execution. While 84% of respondents consider tokenization strategically important, only 26% report being in production or operating at scale.
Overview
The study covers capital markets firms, asset managers, wealth managers, and digital asset firms. It compares their current activity, planned investment, expected adoption timelines, preferred infrastructure models, and reasons for pursuing tokenization.
Capital markets firms are furthest ahead, with 44% reporting production or scaled operations. That compares with 20% of asset managers and 9% of wealth managers. Nearly two thirds of all respondents expect to be ready to offer tokenized assets within two years.
The expected operating model is mainly hybrid. 92% believe traditional and digital assets will coexist for an extended period, while 69% plan to adapt existing infrastructure instead of building separate systems. This supports the view that tokenized financial infrastructure will need to connect with established market processes, governance, custody, distribution, and recordkeeping.
Asset classes are also developing at different rates. 80% expect tokenized mutual funds and money market funds to play a meaningful role within five years. Expectations for equities and private companies are closer to half of respondents.
Who It’s For
This resource is useful for banks, custodians, dealers, exchanges, asset managers, wealth firms, market infrastructure providers, digital asset companies, investors, regulators, and technology teams.
It’s especially useful for organizations deciding whether to build, partner, integrate, or continue monitoring the market. The sector comparisons help readers judge how their own plans compare with North American institutions.
How To Use It
Strategy teams can use the report to compare stated priorities with actual production. The 84% strategic importance figure looks very different beside the 26% production rate. That gap helps identify where budgets, operating capacity, governance, and commercial demand still need work.
Product and infrastructure teams can use the asset class timelines to decide where near term demand is more credible. Mutual funds, money markets, and capital markets infrastructure currently show stronger institutional expectations than equities, private companies, or wealth distribution.
Canadian firms can also compare the findings with Canada’s stablecoin regulatory framework, securities regulation, custody requirements, and domestic market infrastructure. The survey includes Canadian respondents, but it doesn’t publish a separate Canadian data set.
Strengths And Limits
The study’s main strength is its operating detail. It separates strategic interest from production, compares financial sectors, identifies preferred infrastructure models, and ranks regulatory, operational, commercial, budget, security, and organizational barriers.
Regulatory uncertainty was the most cited barrier at 33%. Operational complexity was especially important for capital markets firms, asset managers, and institutions managing more than US$250 billion. The results show that institutional interest alone isn’t enough. Firms still need workable governance, standards, controls, distribution, and a business case.
The study is commissioned by Broadridge, which provides tokenization infrastructure and related services. Readers should consider that commercial context when interpreting its conclusions. The sample is also limited to 200 North American decision makers, and the report does not provide country level results or independently test projected adoption timelines.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
AI Image: Cryptocurrencies give us a chance to get closer to the action
The way that digital finance and mainstream entertainment have come together has given us a variety of new ways to enjoy our favorite activities. Sports fans are among the people who can most appreciate these changes, so let’s take a look at how cryptocurrencies are enhancing the way they interact with their chosen teams and sports.
Faster Deposits and Withdrawals on Sportsbooks
The arrival of online sportsbooks was one of the most notable events for sports in recent times. Being able to find the latest, updated odds from events around the planet was a massive step forward. It means that we can now just as easily bet on the NHL, the NBA, or a table tennis tournament from the other side of the world. Many sportsbooks also provide casino games, ensuring they offer fans a well-rounded platform with lots of options.
Of course, finding a fast and safe way of moving funds in and out of these platforms was the next big challenge. Since it’s a fast-moving industry, fans need to be able to make deposits swiftly and securely, while they also want the security of being able to make rapid withdrawals with complete safety. Traditional fiat methods have been used to good effect, but the growing use of cryptocurrencies allows fans to take advantage of a highly secure and almost instant transfer process.
Looking at this online casino in Canada, we can see that Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) are among the tokens accepted. These are some of the biggest cryptocurrencies in the market, meaning that they offer deep liquidity. Transfer times vary across networks, although most are completed almost instantly. Fees also vary, with most offering an extremely cost-effective approach.
The transfer process is simple once you understand the basics. Fans need to buy their chosen token first, which is usually done through an exchange. The next step is to send the cryptocurrencies to a self-custody wallet, and from there to the sportsbook’s wallet.
Given the added privacy with digital assets, this could also be viewed as a way to ensure that there is a buffer between the user’s main bank account and their gambling account. Some folks like to have a layer of separation, and cryptocurrencies make this significantly easier.
Fan Tokens Provide Voting Rights and Digital Extras
Fan tokens have emerged as one of the most interesting uses of cryptocurrencies. Soccer teams like Manchester City and PSG are among the top options for anyone looking for fan tokens. With fan tokens recently getting the green light in the US, Chiliz has an agreement with the NFL and NBA that lets them offer digital perks without minting any specific team tokens.
The right to vote on fan matters is one of the key aspects of fan tokens, since the holders of these tokens are offered the chance to vote on issues such as team outfits and fan chants. Arguably the first example came from Italy in 2019, when fans of Juventus voted for Song 2 by Blur as the team’s goal celebration music. Barcelona and PSG token holders have also successfully voted on their teams’ music choices in recent years.
In North America, the Professional Fighter League has used fan tokens to help choose the entrance anthems for fighters and also to set the questions to be asked at official press conferences. In the NASCAR world, Roush Fenway Racing (now RFK Racing) launched the first fan token and gave holders the opportunity to vote on various themes and designs.
The UFC went a step further by giving its token holders the chance to attend weigh-ins as VIP guests. This token also has a mechanism where the user’s number of tokens is applied to work out their exact voting power.
Paying for Tickets and Other Expenses
Digital assets can also be used to carry out real-world matchday transactions. The first example of Bitcoin being used by a major sports franchise came from the Sacramento Kings in 2014, when they teamed up with the BitPay payment processor. As well as entrance tickets, fans were able to use BTC to pay for official team merchandise at the store.
The NFL has also moved in the same direction. The Tennessee Titans provide a good example, as this franchise accepts BTC for season tickets and corporate sponsorship payments. We can also see the example of the Houston Texans, who accept BTC for the booking of luxury suites at games. In the wider sports world, FIFA naming Kraken their Official Crypto Exchange Supporter of the FIFA World Cup 2026 is a clear sign of how deeply embedded crypto has become in sports.
Whether you want to place a bet, buy a ticket, or help make fan decisions, cryptocurrencies have been playing an increasingly large role in the way you enjoy your favorite sports. By choosing the right tokens and determining how to use them, you can get more out of your sports-based entertainment.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. 
