Alpaca, an API-first brokerage technology provider based in New York, has taken a key regulatory step toward entering the prediction market sector after its subsidiary, Alpaca Derivatives LLC, registered with the Commodity Futures Trading Commission (CFTC) as a futures commission merchant (FCM) and became a member of the National Futures Association (NFA).
The CFTC serves as the federal regulator with oversight responsibility for prediction markets operating in the US. The registration gives Alpaca the regulatory standing needed to offer access to event contracts traded on prediction markets. The company said it plans to introduce a wider range of futures products over time, subject to regulatory approval.
Alpaca positions the move as part of a broader strategy to serve financial companies seeking access to additional markets through a single infrastructure provider.
“Alpaca is building a one-stop platform for financial companies that want to give their customers access to more markets,” said Tony Lee, Chief Brokerage Officer at Alpaca.
“Entering a new market often means integrating multiple providers and taking on added operational complexity. By adding event contracts to our platform, we can give partners a simpler way to expand their offerings through the infrastructure they already use to build and scale their businesses,” Lee added.
Meanwhile, Yoshi Yokokawa, Co-Founder and CEO of Alpaca, added: “As financial markets become more connected and programmable, financial companies need regulated infrastructure that makes it easier to bring new products to market.”
“This milestone expands the range of markets Alpaca can support and strengthens our ability to power the next generation of API-driven and AI-native financial services,” Yokokawa added.
Client base spans brokerages, fintechs and quant funds
Alpaca’s existing client roster includes brokerage firms, fintech companies, software developers, algorithmic trading platforms and quantitative funds. Brokerage firms and fintech companies have already shown adoption of prediction market products, a trend that could support Alpaca’s entry into event contracts for its client base.
The company serves more than 10 million accounts across more than 40 countries and has raised $400 million in financial backing from investors including Drive, Social Leverage and Tribe Capital.
Prediction markets allow participants to trade event contracts tied to the outcomes of future events, tools that can be used to forecast, plan for, or hedge against real-world outcomes.
Industry volume climbs as sector diversifies beyond sports
Trading activity in prediction markets has accelerated in recent months. Combined monthly global trading volume across the two leading platforms rose nearly fivefold over seven months, reaching approximately $24 billion in April 2026, according to Pew Research Center.
Total market volumes are projected to reach $240 billion in 2026, with some estimates placing growth as high as $1 trillion by 2030; separate analyst projections put potential annual industry volume at $1.5 trillion by that year.
Original article: https://www.yogonet.com/international/news/2026/08/18/125935-alpaca-registers-with-cftc-to-enter-prediction-market-sector
