Ondo Finance Enables Direct In-Kind Conversion for Tokenized Stocks

The new functionality enables approved institutions to mint Ondo Stocks by transferring underlying shares from their Alpaca accounts to Ondo via an automated book transfer. This process, currently live on Ethereum and BNB Chain, reverses for redemptions, where tokens are exchanged back for the underlying securities. By removing the need to source separate cash for minting, the integration eliminates financing costs and timing mismatches that previously hindered market makers.

This shift is designed to strengthen liquidity for tokenized assets on decentralized exchanges and other trading venues. By facilitating a more seamless flow between traditional shares and onchain positions, the model allows for tighter spreads and more responsive inventory management. Access remains restricted to institutions that meet specific onboarding criteria and maintain active accounts with both Ondo and Alpaca.