Ondo Finance enables institutional in-kind conversion for tokenized stocks

Ondo Finance has launched a new in-kind conversion feature that allows institutional users to exchange eligible traditional shares for tokenized versions of those stocks on the Ethereum and BNB Chain networks.

Through an integration with Alpaca’s Instant Tokenization Network, qualified institutions can transfer existing equity inventory directly to Ondo to mint Ondo Stocks tokens. This process eliminates the need for institutions to first sell their shares and convert them into cash before moving assets onchain, a step that previously added settlement friction.

The service is strictly for KYC and AML-verified institutional participants and is not available to retail users. By allowing market makers to use existing share holdings to support token inventories, the mechanism aims to provide deeper liquidity and tighter spreads for tokenized equities.