Ondo Finance has launched an in-kind conversion system enabling institutional clients to mint and redeem tokenized stocks and ETFs directly with underlying securities. This mechanism bypasses the previous requirement to use cash for creating tokenized inventory, allowing firms to transfer shares from Alpaca accounts to Ondo via internal book transfers.
The new process functions in both directions, permitting institutions to exchange tokenized assets back for their underlying shares. This approach aims to lower financing costs and mitigate timing mismatches between traditional securities and their onchain counterparts. The service currently supports the Ethereum and BNB Chain networks.
Access to the system is limited to institutional clients verified by Alpaca, requiring active accounts on both the Alpaca and Ondo platforms. According to RWA.xyz, Ondo currently manages approximately $3,63 billion in distributed assets across 441 products, positioning the company as the second-largest tokenization platform by onchain value.
