Handshake Process

Before a client at Alpaca can mint or redeem tokenized assets via the Issuer, they will need to reach out to Alpaca’s operation team for a handshake step. This step is meant to ensure that the client is both a client of Alpaca and the Issuer. Additionally, they will also need to be an Authorized Participant (AP) with the Issuer.

Linking Accounts

In order to easily communicate between the Alpaca and the Issuer’s platform, the AP’s account at Alpaca will be linked to their account with the Issuer. Alpaca will maintain this linking and use it during the mint and redeem processes.

Issuer’s Account Linking Endpoint

Alpaca will invoke the Issuer’s account linking endpoint. See an example below.

POST /accounts/connect

Alpaca will provide the following JSON body in the endpoint:

{
  "email": "[email protected]",
  "account" : "alpaca_account_number"
}

The Issuer will respond with the AP’s account number on their platform as shown below. Alpaca will persist this information for future use during the mint and redeem flow.

{
  "client_id": "5505-1234-ABC-4G45"
}

In addition, the Issuer can respond with the following statuses:

Designated Tokenization Account

During the mint and redeem process, the Instant Tokenization Network will journal securities to and from the AP's account to the Issuer's account at Alpaca. If the Issuer holds multiple accounts at Alpaca, they will need to inform Alpaca which of their accounts should be designated for tokenization.

Tokenized Assets Data

The Issuer should provide Alpaca an endpoint which can retrieve the list of supported tokenized assets. The endpoint should provide the following data:

• underling symbol
• token symbol
• supported blockchain network

Alpaca will use this information when validating the AP's mint request.

Mint Endpoint and Workflow

The mint workflow is depicted in Figure 1 below.

1. The Authorized Participant sends Alpaca a mint request.
2. Alpaca uses the Issuer’s endpoint to submit a mint request with a JSON object in the body. The Issuer will validate the mint request.

Issuer’s Mint Request Endpoint

POST /inkind/issuance

Mint request body:

{
  "tokenization_request_id": "12345-678-90AB",
  "qty": "1.23",
  "underlying_symbol": "TSLA",
  "token_symbol": "TSLAx",
  "network": "solana",
  "client_id": "98765432",
  "wallet_address": "<AP's wallet address to deposit the tokenized asset>"
}

Mint response:

{
  "issuer_request_id": "123-456-ABCD-7890",
  "status": "created"
}

In addition, the Issuer will provide the following status on the request response:

3. Alpaca journals the underlying security from the AP’s account into the Issuer’s account.
4. Alpaca invokes the Issuer’s endpoint to confirm the underlying asset's journal status.

Issuer Mint Journal Confirmation Endpoint

/inkind/issuance/confirm

Mint journal confirmation body:

{
  "tokenization_request_id": "12345-678-90AB",
  "issuer_request_id": "ABC-123-DEF-456",
  "status": "<completed/rejected>"
}

5. The Issuer deposits the tokens into the AP’s wallet on a successful journal.
6. The Issuer invokes Alpaca’s endpoint to confirm the successful token mint. The Issuer will provide their designated Alpaca tokenization account_id as a URL parameter in the endpoint.

Alpaca's Mint Confirmation Callback Endpoint

POST /v1/accounts/{account_id}/tokenization/callback/mint

Mint confirmation callback body:

{
  "tokenization_request_id": "12345-678-90AB",
  "client_id": "5505-1234-ABC-4G45",
  "wallet_address": "<AP's wallet address where the tokenized assets were deposited>",
  "tx_hash": "0x12345678",
  "network": "solana"
}

Redeem Endpoint and Workflow

The redeem workflow is depicted in Figure 2 below.

1. The token redemption process will be initiated by the client by moving the tokens into the Issuer’s redemption wallet address. The Issuer will remove these tokens from circulation.
2. The Issuer will then notify Alpaca using the following endpoint that an AP has redeemed their tokens. The Issuer will provide their designated Alpaca tokenization account_id as a URL parameter in the endpoint.

Alpaca's Redeem Request Endpoint

POST /v1/accounts/{account_id}/tokenization/redeem

Redeem request body:

{
  "issuer_request_id": "ABC-123-DEF-456",
  "underlying_symbol": "AAPL",
  "token_symbol": "AAPLx",
  "client_id": "5505-1234-ABC-4G45",
  "qty": "1.23",
  "network": "solana",
  "wallet_address": "<the originating wallet address for the redeemed tokens>",
  "tx_hash": "0x12345678"
}

Redeem response:

{
  "tokenization_request_id": "12345-678-90AB",
  "issuer_request_id": "ABCDEF123",
  "created_at":"2025-09-12T17:28:48.642437-04:00",
  "type": "redeem",
  "status": "completed",
  "underlying_symbol": "TSLA",
  "token_symbol" : "TSLAx",
  "qty" : "123.45",
  "issuer" : "xstocks",
  "network": "solana",
  "wallet_address": "0x1234567A",
  "tx_hash" : "0x1234567A",
  "fees" : "0.567"
}

3. Finally, Alpaca will journal the underlying asset from the Issuer’s account into the AP’s account.

List Requests

An Issuer can use the following endpoint to list the tokenization requests performed through their platform. The Issuer will provide their designated Alpaca tokenization account_id as a URL parameter in the endpoint.

Alpaca's List Requests Endpoint

GET /v1/accounts/{account_id}/tokenization/requests

List response:

[
   {
    "tokenization_request_id": "12345-678-90AB",
    "issuer_request_id": "ABCDEF123",
    "created_at":"2025-09-12T17:28:48.642437-04:00",
    "updated_at":"2025-09-12T17:28:48.642437-04:00",
    "type": "redeem",
    "status": "completed",
    "underlying_symbol": "TSLA",
    "token_symbol" : "TSLAx",
    "qty" : "123.45",
    "issuer" : "xstocks",
    "network": "solana",
    "wallet_address": "0x1234567A",
    "tx_hash" : "0x1234567A",
    "fees" : "0.567"
  },
  {
    "tokenization_request_id": "12345-678-90AB",
    "issuer_request_id": "ABCDEF123",
    "created_at":"2025-09-12T17:28:48.642437-04:00",
    "updated_at":"2025-09-12T17:28:48.642437-04:00",
    "type": "redeem",
    "status": "completed",
    "underlying_symbol": "TSLA",
    "token_symbol" : "TSLAx",
    "qty" : "123.45",
    "issuer" : "xstocks",
    "network": "solana",
    "wallet_address": "0x1234567A",
    "tx_hash" : "0x1234567A",
    "fees" : "0.567"
  },
  {
    "tokenization_request_id": "12345-678-90AB",
    "issuer_request_id": "ABCDEF123",
    "created_at":"2025-09-12T17:28:48.642437-04:00",
    "updated_at":"2025-09-12T17:28:48.642437-04:00",
    "type": "redeem",
    "status": "completed",
    "underlying_symbol": "TSLA",
    "token_symbol" : "TSLAx",
    "qty" : "123.45",
    "issuer" : "xstocks",
    "network": "solana",
    "wallet_address": "0x1234567A",
    "tx_hash" : "0x1234567A",
    "fees" : "0.567"
  }
]

Glossary

• Authorized Participant: An entity licensed to conduct digital asset business in the tokenized asset, e.g xstocks. The Issuer only sells tokenized assets to Authorized Participants (AP). The AP can sell the tokenized assets to their clients.
• Issuer: Financial entity which purchases the underlying equity securities, wraps them and creates/issues tokens which are backed by the same.
• Mint: The act of converting underlying equity securities into tokenized assets.
• Redeem: The act of converting tokenized assets into their underlying equity securities.