Ondo Finance now lets approved institutions mint and redeem tokenized stocks and ETFs in‑kind by transferring underlying shares from Alpaca accounts, reducing cash requirements.
Ondo Finance has launched an in‑kind conversion system that enables eligible institutions to mint tokenized stocks and exchange‑traded funds by transferring the underlying shares from their Alpaca accounts to Ondo via an internal book transfer. The transferred shares trigger the issuance of corresponding Ondo Stocks tokens on‑chain, and the process can be reversed to redeem tokens for the original shares.
The new route supplements Ondo’s existing cash‑funded model, which required institutions holding the underlying shares to also provide separate cash to mint tokens. By using the shares directly, institutions may need less additional capital, and Ondo says the method could lower financing costs and reduce timing mismatches between traditional and tokenized positions.
Conversions are currently supported on Ethereum and BNB Chain and are limited to institutional clients approved by Alpaca that maintain active accounts with both Alpaca and Ondo. RWA.xyz data shows Ondo managing about $3.63 billion in distributed assets across 441 products, ranking it second among tokenization platforms behind Securitize.
The available reporting provides only the details above; further information on adoption or performance of the in‑kind system has not been disclosed.