Alpaca and Broadridge Financial Solutions said today (Monday) they integrated Broadridge's shareholder governance platform into Alpaca's Instant Tokenization Network.

The deal adds proxy voting, investor communications and voting entitlement reconciliation for holders of tokenized and traditional equities on Alpaca's brokerage infrastructure.

Alpaca, a US-based self-clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term broker-dealer, will keep providing custody and clearing for the underlying shares, the companies said. Broadridge, a New York fintech listed on the NYSE, will handle governance services, including regulatory disclosures tied to stock ownership.

Governance Gap Widens as Tokenized Shares Multiply

The partnership targets a structural problem that has followed tokenized equities since the format's earliest offerings. When a stock exists as a token rather than a book entry at a broker, the usual mechanics for delivering proxy ballots and dividend notices do not automatically carry over.

Alpaca launched its Instant Tokenization Network in October, letting institutions swap shares for tokens and back without a cash leg. Governance had remained a missing piece of that structure.

Alpaca Co-Founder and CEO Yoshi Yokokawa said the companies are "combining modern tokenization infrastructure with trusted governance capabilities."

• US Brokerage Platform Alpaca Secures US$435 Million, Including Debt from Kraken Parent and BMO
• Alpaca Passports Investment Services Into 29 EEA Countries From Spanish Hub
• WealthKernel Becomes Alpaca Europe as US Broker Plants Its Flag in London

As tokenized assets are issued and held across multiple blockchain networks and intermediaries, keeping shareholder records and voting entitlements consistent gets harder, the companies said.

Broadridge's platform is meant to reconcile those records for both registered and beneficial holders regardless of where the tokens sit.

Broadridge Extends a String of Governance Deals

This is not Broadridge's first push into tokenized share governance this year. Ondo Finance partnered with Broadridge in July to add proxy voting and shareholder communications to its SEC-aligned tokenized US securities, a structure that keeps underlying shares inside the existing custody system while recording ownership on the blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term.

A different governance model has emerged elsewhere in the market. Computershare, one of the largest transfer agents in the United States, agreed in late April to record Issuer-Sponsored Tokens directly on its own books through a partnership with Securitize, letting public companies issue tokenized shares alongside conventional ones.

That approach ties governance to the transfer agent rather than to a voting platform layered on top of custodial tokens, the model Alpaca and Broadridge are using.

Broadridge's tokenization push also includes its Distributed Ledger Repo platform, which the company said settles tokenized real assets worth more than $357 billion a day. Broadridge has not disclosed the methodology behind that figure.

Alpaca Expands Balance Sheet Behind Tokenization Push

Alpaca has been raising capital to build out that infrastructure. The company disclosed a $435 million financing package on Friday, including $300 million in debt from Kraken parent Payward and Canadian bank BMO, days before announcing the Broadridge integration.

That followed a $150 million Series D round in January that valued Alpaca at $1.15 billion.

Alpaca's own materials describe the company as backed by $400 million in funding, a figure that predates the $435 million package the company disclosed last week. Alpaca said it now supports more than 10 million brokerage accounts for fintechs and institutions in more than 40 countries.

Retail and Institutional Investors Get Separate Access Points

Under the agreement, institutional investors can route votes on tokenized holdings through their existing governance workflows, including voting choice programs, the companies said. Retail investors would access eligible shareholder meetings through Broadridge's ProxyVote.com service.

Doug DeSchutter, president of Broadridge's Investor Communication Solutions business, said the arrangement is meant to bring "accurate voting, specialized investor experiences, and regulatory disclosures" to token holders.

The structure follows guidance the SEC issued in January distinguishing issuer-sponsored tokenized securities from third-party models such as the one underlying Alpaca's network. Both structures remain subject to existing securities and derivatives laws, the regulator said.