Ondo said on Sept. 21 that Ondo Stocks now supports in-kind conversion between underlying equities and tokenized stocks and ETFs, while also adding a primary issuance route through Alpaca’s Instant Tokenization Network, or ITN. Under the setup, eligible institutions can use existing stock holdings to mint corresponding Ondo Stocks tokens, or redeem those tokens for the underlying shares. Ondo said the process works through internal book transfers between an institution’s Alpaca account and Ondo’s Alpaca account, after which tokens are issued on supported blockchains; redemptions follow the reverse path. The company said the mechanism removes the need for manual approval on every transaction and is designed to make movement between traditional equity holdings and on-chain tokenized assets easier for institutions. It also said the feature could improve secondary-market liquidity for Ondo Stocks and narrow spreads. The conversion function is not available to all users. It is limited to institutions approved by Alpaca, and participants must maintain valid accounts with both Ondo and Alpaca and complete the required onboarding and approval procedures. The feature is now live on Ethereum and BNB Chain.
Ondo said on Sept. 21 that Ondo Stocks now supports in-kind conversion between underlying equities and tokenized stocks and exchange-traded funds, or ETFs. The company also said it has added a new primary issuance channel through Alpaca’s Instant Tokenization Network, known as ITN.
Eligible institutions can use existing stock holdings to mint corresponding Ondo Stocks tokens. They can also redeem those tokens and receive the underlying shares.
According to the official description, once an institution initiates minting, the underlying shares it holds are moved through an internal book transfer from its Alpaca account to Ondo’s Alpaca account. Corresponding tokens are then issued on supported blockchains. The redemption process runs in the opposite direction.
Ondo said the mechanism does not require manual approval for each transaction. It said the setup can make it easier for institutions to move between traditional equity holdings and on-chain tokenized assets, and could increase liquidity in the Ondo Stocks secondary market while narrowing spreads.
The feature is currently available only to institutions that have been reviewed and approved by Alpaca, and it is not a general feature for all Ondo Stocks users. Participating institutions must hold valid accounts with both Ondo and Alpaca and complete the required account opening and approval procedures. The conversion function is now live on Ethereum and BNB Chain.
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