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Ondo Lets Institutions Convert Shares Into Tokenized Stocks
Approved institutions can now mint and redeem Ondo Stocks with existing shares, a change designed to improve secondary-market liquidity and reduce financing costs.
- On Monday, September 21, 2026, Ondo Finance announced that Ondo Stocks now supports in-kind conversion between underlying shares and tokenized stocks and ETFs, utilizing Alpaca's Instant Tokenization Network.
- Under the previous cash-funded model, institutions holding underlying shares needed to source separate cash to mint tokens, introducing financing costs and timing mismatches between their share inventory and tokenized positions.
- To mint tokens, approved institutions transfer underlying shares from their Alpaca account to Ondo's account via internal book transfer, while redemption reverses the process to return shares to the institution.
- This integration supports tighter spreads and deeper secondary market liquidity for Ondo Stocks by converting share inventory into onchain liquidity, with conversions currently live on Ethereum and BNB Chain.
- Access to this functionality remains limited to institutions approved by Alpaca on a case-by-case basis, as the Instant Tokenization Network is not a generally available feature across the broader Ondo Stocks ecosystem.
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The New York LedgerReposted by 
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BITRSSOndo lets institutions convert stocks directly into tokenized shares
Ondo’s new in-kind conversion system allows approved institutions to mint and redeem tokenized stocks and ETFs using the underlying securities instead of cash. Ondo Finance has introduced a way for eligible institutions to convert stocks and exchange-traded funds directly into their tokenized equivalents, or redeem the tokens for the underlying shares. Under the new system, approved institutions can transfer shares from their Alpaca accounts to …
PR NewswireReposted by 
GlobalFinTechSeries
GlobalFinTechSeriesOndo Finance Launches In-Kind Conversion, Letting Institutions Convert Underlying Shares Directly Into Tokenized Stocks
/PRNewswire/ -- Ondo Finance today announced that Ondo Stocks now supports in-kind conversion between underlying shares and tokenized stocks and ETFs, adding a...
·Chicago, United States
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