Ondo Finance unveils in-kind share conversion route
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- Ondo Finance introduced an in-kind conversion route enabling approved institutions to transform existing equity inventory directly into tokenised stocks.
- The infrastructure integration bypasses cash-funded minting requirements, unlocking capital-efficient liquidity across Ethereum (CRYPTO:ETH) and BNB Chain.
- Market makers can now mint and redeem Ondo Stocks tokens directly against brokerage-held shares.
Ondo Finance (CRYPTO:ONDO) has launched an in-kind conversion mechanism to let approved institutions mint tokenised equities using shares they already hold.
The fresh primary market pathway connects traditional brokerage holdings directly with on-chain liquidity networks.
“Ondo Stocks now supports in-kind conversion between underlying shares and tokenised stocks and ETFs, adding a new primary market route alongside Ondo's existing cash-funded flow,” Ondo said in a statement.
Management structured the integration through Alpaca's Instant Tokenisation Network to automate asset transfers without separate cash funding.
“The functionality works through Ondo Stocks and Alpaca's Instant Tokenisation Network, enabling approved institutions to contribute existing shares to mint the corresponding Ondo Stocks tokens, or redeem tokens to receive the underlying shares,” according to Ondo.
Protocol infrastructure relies on direct book transfers between institutional brokerage accounts to eliminate settlement friction.
The deployment deepens secondary market trading depth by letting liquidity providers convert asset inventory seamlessly into blockchain-native tokens.
Following the update, ONDO was trading up at $0.4303.
