Ondo Enables Direct In‑Kind Conversion of Stocks and ETFs into Tokenized Shares

Ondo Finance has added a new in‑kind conversion mechanism for institutional clients, allowing them to transform traditional equities and exchange‑traded funds (ETFs) into their blockchain‑based token equivalents without needing additional cash.

How the In‑Kind Conversion Works

Eligible institutions can transfer shares from their Alpaca brokerage accounts to Ondo via an internal book transfer. Once the shares are received, Ondo issues corresponding tokenized stock or ETF tokens on‑chain. The process is reversible: institutions can redeem the tokens to receive the original underlying shares.

Benefits Over the Cash‑Funded Model

• Reduces the extra capital that institutions must provide when minting tokens.
• Potentially lowers financing costs associated with creating tokenized inventory.
• Minimizes timing mismatches between traditional share holdings and their tokenized representations.

Supported Chains and Access Requirements

The conversion service is currently available on Ethereum and BNB Chain. Access is limited to institutional clients approved by Alpaca, and participants must maintain active accounts on both Alpaca and Ondo.

Ondo’s Position in the Tokenization Landscape

According to RWA.xyz data, Ondo manages approximately $3.63 billion in distributed assets across 441 tokenized products, making it the second‑largest tokenization platform by on‑chain value, behind Securitize.