Ondo and Alpaca Add In‑Kind Minting for Tokenized Stocks

Ondo Finance has introduced an in‑kind minting and redemption flow for its institutional Ondo Stocks product. The new mechanism lets qualified institutions use their existing equity holdings to mint tokenized stock positions without first converting the shares to cash.

How the In‑Kind Flow Works

Through an integration with Alpaca’s Instant Tokenization Network, institutions that already hold the underlying securities can deposit those shares directly into the tokenization process. This bypasses the traditional steps of selling the shares, moving cash, and then using that cash to create on‑chain exposure.

Supported Chains and Scope

The service currently supports minting and redemption on Ethereum and BNB Chain. It is limited to KYC/AML‑verified institutional participants and is not available to retail users.

Potential Benefits for Institutions

• Reduces settlement friction by eliminating a cash conversion step.
• Aligns the tokenization workflow with familiar creation‑and‑redemption mechanics used in other institutional products.
• Facilitates scaling of tokenized equities by leveraging existing inventory.

Current Status

The in‑kind minting feature is live for eligible institutional users on the supported chains. No retail minting option is offered at this time.