Ondo Finance Debuts In-Kind Tokenization Feature for Institutions

Ondo Finance has introduced an in-kind tokenization feature that allows approved institutions to convert their shares directly into Ondo Stocks on Alpaca's Instant Tokenization Network. The new route removes the need for manual approval and separate cash funding, enabling market makers to move inventory between traditional brokerage accounts and on-chain venues.

The integration is currently available on Ethereum and BNB Chain, with access granted case by case only. To use the feature, institutions must have active Ondo and Alpaca accounts before activating the in-kind conversion route directly.

Ondo claims that using existing shares can reduce financing needs and improve secondary-market liquidity for institutions. The company also says that this model could lead to 'tighter spreads and deeper liquidity' in secondary markets.