Trading platforms like Coinbase and Robinhood are rushing to offer all things to all customers—from stocks to crypto to prediction markets. This has created an opportunity for Alpaca, which provides infrastructure to brokerage firms, and on Wednesday announced a hefty new funding round.
Alpaca, which builds software that lets companies more easily offer stocks, ETFs, and other financial instruments, raised $150 million in a Series D fundraise that valued the startup at $1.15 billion. Columbus, Ohio-based venture firm Drive Capital led the round, while market-making giant Citadel Securities, the crypto exchange Kraken, and the venture arm of the bank BNP Paribas also contributed. As part of the financing, Alpaca secured a $40 million line of credit.
The startup’s fundraise comes as the dividing lines between once-separate forms of trading blur, and the Coinbases and Robinhoods of the world begin to more closely resemble each other.
“Crypto players have to combat against fiat players coming into the crypto. Crypto players have to combine with TradFi as well. So, it’s merging into one,” Alpaca cofounder and CEO Yoshi Yokokawa told Fortune. “Everyone who’s missing some components of the final shape of the application, they have to figure out how to add that very quickly.”
