
Ondo Finance Launches In-Kind Conversion, Letting Institutions Convert Underlying Shares Directly Into Tokenized Stocks
Ondo Finance has launched an in-kind conversion feature for its Ondo Stocks product, allowing approved institutions to mint and redeem tokenized stocks and ETFs directly using existing share inventory. Developed in collaboration with Alpaca through its Instant Tokenization Network (ITN), this new primary market route eliminates the previous requirement for cash-funded flows. By enabling institutions to contribute shares directly from their Alpaca accounts to mint tokens, the process removes financing costs and timing mismatches associated with sourcing separate cash. This integration automates the conversion process, facilitating faster movement between traditional share inventory and onchain positions. The update is designed to improve capital efficiency for market makers, allowing them to replenish token inventory more effectively. Consequently, this development supports tighter spreads and deeper liquidity for Ondo Stocks across secondary markets, exchanges, and DeFi applications. This move represents a significant step in bridging traditional financial market liquidity with blockchain-based tokenized assets.









