US fintech Alpaca is to acquire the UK's WealthKernel, a provider of digital investment infrastructure and tax-advantaged products for businesses.
Alpaca will lean on WealthKernel's EU and UK licences with the ambition of creating a global brokerage API for the wealth management industry.
WealthKernel brings wealth management capabilities, including ISAs, SIPPs, and other tax-advantaged accounts, complementing Alpaca’s trading infrastructure. The firm has helped the likes of Claro Money, Wahed, and Wealth8 to enter underserved areas of the wealth services market, covering areas from halal and ethical investment to ESG. It last raised £6 million in a Series extension round in Janary 2024.
"The acquisition of WealthKernel is a major step for Alpaca in becoming a truly global brokerage infrastructure. WealthKernel has gained a highly regarded reputation in the UK and EU through working closely with a number of financial institutions," says Yoshi Yokokawa, CEO of Alpaca. "With WealthKernel joining us, we’re directly entering the UK and EU, enhancing our support of global institutions that desire regulated investing across borders."
The deal reinforces Alpaca’s position as a full-stack, global brokerage infrastructure provider, enabling brokers, banks, and fintechs to launch trading, custody, and wealth products quickly, compliantly, and at scale. Earlier this year, Kraken partnered with Alpaca to deliver commission-free US equities trading to their US clients and joined as one of their 200+ global partners.