Ondo Finance Launches In-Kind Conversion for Tokenized Stocks
Ondo Finance has introduced in-kind conversion functionality for its tokenized stocks and ETFs. This new feature allows approved institutions to convert existing share inventory directly into Ondo Stocks tokens using Alpaca's Instant Tokenization Network (ITN), eliminating the need to use cash for minting or redemption processes. The integration automates conversions between traditional shares and tokenized assets, enabling faster liquidity management across secondary markets. By removing manual approvals and reducing financing costs associated with separate cash sourcing under previous models, institutions can more efficiently replenish inventory and manage exposure in real time. The feature is currently available on Ethereum and BNB Chain. This development enhances the capital efficiency of Ondo Stocks by connecting tokenized assets to traditional market liquidity sources like Nasdaq and NYSE. It supports tighter spreads and deeper secondary market depth, making institutional capital a more reliable source for tokenized stock liquidity.
Topics: Alpaca ITN institutions liquidity primary market route tokenized stocks