Ondo And Alpaca Add In-Kind Minting For Tokenized Stocks
TL;DR Ondo Finance has added in-kind minting and redemption for institutional Ondo Stocks users. Eligible institutions can contribute existing equity inventory rather than converting shares to cash first. The service cur...
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- Ondo Finance has added in-kind minting and redemption for institutional Ondo Stocks users.
- Eligible institutions can contribute existing equity inventory rather than converting shares to cash first.
- The service currently supports tokenized positions on Ethereum and BNB Chain and is not a retail minting product.
Ondo Finance is removing one of the more awkward steps in institutional stock tokenization: converting existing share inventory to cash before moving it onchain.
Through an integration with Alpaca’s Instant Tokenization Network, eligible institutional users can now contribute existing equity inventory directly to mint Ondo Stocks positions.
Shares Can Move Into The Tokenized System Without A Cash DetourThe new in-kind flow changes the mechanics for institutions that already hold the underlying securities.
Instead of selling shares, moving cash and then using that cash to create tokenized exposure, qualified users can deposit the existing inventory into the process.
Ondo says the mechanism supports minting and redemption on Ethereum and BNB Chain.
For large institutions, that can reduce settlement friction and make tokenized equities feel less like a separate market that needs to be funded from scratch.
It also brings the workflow closer to the creation-and-redemption mechanics familiar from other institutional investment products.
Retail Users Are Not The TargetThe service is restricted to KYC and AML-verified institutional participants.
That means this is not a new button that lets ordinary retail users turn brokerage shares into blockchain tokens.
The significance is more structural.
Tokenized securities become easier to scale when the conversion process works with the inventory institutions already hold.
Ondo and Alpaca are effectively trying to make the bridge between conventional equity custody and tokenized ownership less cumbersome.
The product is now live for eligible institutional users on Ethereum and BNB Chain, with no cash-conversion step required for contributed inventory.
This article was written by the News Desk and edited by Samuel Rae.
Why this matters
BNB is showing up inside the Institutional Adoption theme, so this story is worth tracking for follow-through rather than treating it as a one-off headline.
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