Ondo Unlocks $3.6B Tokenized Market With Direct Stock-to-Token Conversions

Ondo Finance has launched a new institutional-grade solution enabling the direct in-kind conversion of legacy stocks and ETFs into tokenized assets without requiring additional cash investment. By integrating with Alpaca’s Instant Tokenization Network, the platform facilitates a two-way conversion process where institutions can swap existing share inventory for tokens on Ethereum and BNB Chain and vice versa. This mechanism eliminates the need for institutions to hold extra capital to establish tokenized positions, effectively reducing friction between traditional securities and blockchain-based markets. The initiative is specifically designed for market makers and liquidity providers, allowing them to mobilize existing assets into on-chain liquidity more efficiently. According to RWA.xyz data, Ondo currently manages $3.63 billion in assets across 441 products, underscoring its significant footprint in the sector. By streamlining the transition from traditional shares to tokens, this development aims to deepen secondary market liquidity and accelerate the adoption of tokenized securities. Access to this conversion feature remains restricted to pre-approved institutions that have completed onboarding with both Ondo and Alpaca.