Ondo Finance has introduced a new conversion method that allows approved institutions to mint tokenized stocks using shares already held in their Alpaca accounts, eliminating the need for cash-based transactions.
The feature is now live on Ethereum and BNB Chain. The process works through an internal book transfer, where an approved institution moves shares from its Alpaca account to an Ondo Alpaca account. Ondo then creates tokens for these shares on the blockchain. When the institution redeems its Ondo Stocks tokens, the shares are returned to its Alpaca account.
The conversion process does not require manual approval for each transaction, according to Ondo. Alpaca Clearing, a FINRA-regulated broker-dealer, provides the brokerage and custody infrastructure for the network through its Instant Tokenization Network, or ITN.
Access and Eligibility
Access to in-kind conversions is available to approved Alpaca account holders on a case-by-case basis. Participants must maintain active accounts on both Ondo and Alpaca platforms. Ondo notes that ITN is not a generally available feature for all Ondo Stocks users.
Ondo states that it provides tokens only to eligible non-U.S. persons, offering economic exposure to referenced securities without being actual stocks, ETFs, or ADRs.
Platform Growth
As of September 22, Ondo's platform held $3.63 billion in distributed assets across 441 products. The stock platform reached $1 billion in total value locked in May, less than a year after its September 2025 launch.
Ondo Stocks also trade on Solana, though the announcement on September 21 specified conversions on Ethereum and BNB Chain.
