US broker-dealer Alpaca has launched an Instant Tokenization Network (ITN) that allows institutions to directly build and redeem US stocks.
ITN allows institutions to tokenize their portfolios with a single API call and suppress the underlying stock tokens without delay in payments, Alpaca disclosed Wednesday. The service operates beyond traditional market times and offers 24/7 access.
By allowing physical redemption, the network aims to make tokenized inventory more fluid and efficient by directly exchanging the underlying assets and tokens, rather than initially settling down to cash.
Alpaca said the feature is based on recent efforts by the U.S. Securities and Exchange Commission (SEC) to address similar inefficiencies in the crypto exchange sales product (ETP) market, particularly through approval of the creation and redemption of physical Spot Bitcoin (BTC) and Ether (ETH) ETFs.
Alpaca told Cointelegraph.
The tokenized stock market is currently valued at over $700 million. sauce: rwa.xyz
“ITN’s process is best understood as a single API that enables two functions,” Arush Sehgal, head of Crypto at Alpaca, told Cointelegraph.
“The first is journaling of securities to and from securities accounts. This applies to US regulated financial institutions,” he said. “The second is the delivery of tokens to certified participants by the issuer. This is usually a non-US entity belonging to a US institution that began journaling the stock in Step 1.”
Alpaca offers basic infrastructure to recent tokenization initiatives, including inventory and ETFs for tokenized stocks, Ondo Finance’s platform for tokenizing Xstocks platform.
Related: Solana Foundation joins Bitget Wallet Ondo Finance’s Market Alliance
Wall Street, SEC converges to tokenization
Industry data shows that tokenization of real assets has emerged as one of the most prominent blockchain investment trends in 2025, with more than $31 billion in assets representing Onchain.
In the US, the movement has attracted attention with support from regulatory authorities.
After US Treasury bonds and private credit led the early wave of tokenization, tokenized stocks look like the next frontier.
Speaking to Cointelegraph at the Token2049 Conference in Singapore, Rob Hadick, general partner at Crypto Venture Capital Firm Dragonfly, said: He noted that traditional finances are increasingly attracted to features such as 24/7 trading.
Rob Haddick speaks to Cointelgraf on the bystander of the Token 2049 meeting. Source: Andrew Fenton/Cointelegraph
However, Hadick warned that institutional players are cautioning that they share retail-centric projects and blockchain infrastructure.
“They want to have control over things like privacy (and) that the validators have set up. They want to have control over what’s going on in the execution environment,” he said.
This shift comes in reports that the SEC is considering a framework that will allow traditional stocks to trade on blockchain networks in a similar way to cryptocurrency.
https://www.youtube.com/watch?v=owvy6lp9w2a
magazine: Robinhood’s tokenized stock has stirred up legal wasp nests
