A Little-Known Broker Dominates Crypto Stock Tokens

The fast-growing business of trading U.S. stocks as crypto tokens is enabling overseas investors to buy and sell shares of companies such as Tesla and Nvidia. The $1 billion industry relies on one little-known brokerage.

Alpaca, a San Mateo, Calif.–based broker-dealer, maintains custody of nearly three-quarters of the market because few other brokers are willing to do the trades, which can open them to regulatory risks, such as potentially violating anti–money-laundering rules.