Ondo and Alpaca let institutions mint tokenized stocks without cash conversion

Ondo Finance introduced in-kind minting and redemption for institutional Ondo Stocks users via Alpaca’s Instant Tokenization Network. Eligible institutions can contribute existing equity inventory directly to mint tokenized positions on Ethereum and BNB Chain. This reduces settlement friction by removing the cash-conversion step and aligns tokenized equities with traditional creation-and-redemption workflows used in institutional products.

Key changes

• In-kind flow: Institutions deposit existing share inventory to mint or redeem tokenized exposure without selling shares for cash first.
• Chains: Ethereum and BNB Chain supported for minting and redemption.
• Scope: Limited to KYC and AML-verified institutional participants. Not available for retail minting.

Impact

• Operational efficiency: Fewer steps and lower settlement friction for institutions already holding underlying securities.
• Market integration: Treats tokenized equities as an extension of existing custody rather than a separate, cash-funded market.
• Scalability: Simplifies conversion pipelines, which can support broader institutional adoption of tokenized securities.

The product is live for eligible institutional users on Ethereum and BNB Chain, enabling in-kind contributions and redemptions without a cash detour.