Ondo Finance has streamlined the process for institutional investors to create tokenized stock positions by eliminating an intermediary cash conversion step. Through integration with Alpaca's Instant Tokenization Network, qualified institutional participants can now deposit existing equity inventory directly to mint Ondo Stocks positions.
Streamlined Institutional Workflow
Previously, institutions seeking to create tokenized equity exposure had to sell shares, convert them to cash, and then use that cash to generate blockchain-based positions. The new in-kind minting process allows eligible users to contribute existing inventory directly, reducing settlement friction and simplifying the conversion process.
The mechanism supports minting and redemption on both Ethereum and BNB Chain. By allowing institutions to work with inventory they already hold, the service brings tokenized securities workflows closer to familiar creation-and-redemption mechanics used in other institutional investment products.
Institutional Access Only
The service is restricted to KYC and AML-verified institutional participants. This is not a retail product, meaning individual investors cannot use the new in-kind minting feature through their brokerage accounts.
The significance of the development lies in making tokenized securities easier to scale by simplifying the conversion process for institutions. Ondo and Alpaca are working to reduce friction in the bridge between conventional equity custody and blockchain-based tokenized ownership. The product is now live for eligible institutional users on Ethereum and BNB Chain.
