Alpaca prepares to enter prime brokerage for hedge funds

What happened

In July 2026, Alpaca raised $135 million in an equity round, part of a larger $435 million funding package earmarked for its API (the interface one piece of software uses to talk to another)-first prime brokerage infrastructure. Alpaca's entry into prime brokerage could disrupt traditional banking dominance, offering hedge funds cost-effective, tech-driven alternatives.

The post Alpaca prepares to enter prime brokerage for hedge funds appeared first on Crypto Briefing . 13, 2026 Alpaca, the API-first brokerage startup out of San Mateo, is preparing to offer trade financing services to hedge funds.

That puts it on a path into prime brokerage, a business long run by large banks. What Alpaca is building The plan centers on adding financing, margin, and securities lending to its existing infrastructure, all aimed at institutional clients.

The company’s total funding has surpassed $300 million. It provides support for millions of brokerage accounts across more than 40 countries, and it has reported significant growth in both revenue and trading volume.

Advertisement Alpaca already counts hedge funds and proprietary trading firms among its users, offering them commission-free algorithmic trading, low-latency (the delay between asking for something and getting it) APIs, competitive margin rates, and access to easy-to-borrow securities. Join 34,000+ readers across crypto, finance, and policy.