Alpaca, a prominent provider of brokerage infrastructure APIs, has announced the completion of its European Economic Area (EEA) passporting, extending its regulated investment services to 29 countries. This strategic development means that fintech companies and financial institutions across the EEA can now access Alpaca's API-driven investment infrastructure through a single, locally authorised European entity based in Spain.
The passporting allows Alpaca to leverage the regulatory foundation established through its European entity, which is authorised and registered with Spain’s Comisión Nacional del Mercado de Valores (CNMV). This framework, operating under MiFID II, enables the company to support partners building regulated investment products across a market of nearly 500 million people. The listed countries include major economies such as Germany, France, Italy, and Spain, alongside other EU member states and EEA nations like Norway and Iceland.
For UK businesses and investors, while Alpaca already has a regulated UK entity, this expansion signifies a broader integration of European financial markets. It could foster greater competition and innovation in investment product development across the continent, potentially leading to more diverse and cost-effective options for cross-border investments. This development follows Alpaca's European expansion last year, which included the acquisition of WealthKernel and the launch of Alpaca in Europe.
The move is expected to simplify operations for fintechs and financial institutions looking to offer investment products across multiple European jurisdictions. Instead of pursuing separate authorisations market by market, businesses can now work with Alpaca for account infrastructure, custody, and trading capabilities through one centralised regulatory pathway. This streamlining could reduce operational costs and accelerate the launch of new investment platforms and services.
Karan Shanmugarajah, CEO of Alpaca Europe, highlighted that completing EEA passporting represents a significant step in establishing Alpaca as a truly regional infrastructure partner in Europe. The aim is to combine local regulatory expertise with Alpaca’s API-first technology to make it easier for partners to build, launch, and scale investment products across the continent. This enhanced capability complements Alpaca's existing licensed UK operations and its US-headquartered, fully licensed self-clearing brokerage infrastructure.