Ondo Finance Streamlines Institutional Stock Tokenization
- Ondo Finance introduces in-kind minting and redemption for institutional users of Ondo Stocks.
- Eligible institutions can contribute existing equity inventory directly, bypassing the need to convert shares to cash first.
- The service supports tokenized positions on Ethereum and BNB Chain, excluding retail users.
- Integration with Alpaca’s Instant Tokenization Network facilitates this new process for institutional participants.
- The mechanism aims to reduce settlement friction and aligns with familiar institutional investment product workflows.
This development allows institutions to seamlessly transition existing equity inventories into tokenized systems without converting them to cash, enhancing efficiency and scalability. The focus remains on institutional users, ensuring compliance with KYC and AML standards.
By eliminating the cash conversion step, Ondo Finance simplifies the process of stock tokenization for large institutions, potentially making tokenized equities more accessible and less cumbersome to manage. Source
