The Wales international - who was named in the Euro 2016 Team of the Tournament - passed a medical with the Potters on Monday before signing a five-year deal.
Allen will link up with his new team-mates in Orlando, where they are currently undergoing pre-season training, on Tuesday.
The midfielder becomes Stoke's second signing of the summer, following the acquisition of highly-rated Egyptian player Ramadan Sobhi.
“It’s been a whirlwind 48 hours for me but I am delighted to have finally been able to put pen to paper," Allen told the club's official website upon completing his transfer.
“I was really excited as soon as I heard of the club’s interest and it wasn’t a difficult decision for me to make."
“I am incredibly excited about my future here at Stoke City."
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