Ondo Finance Enables Institutional Tokenization of Existing Shares

Ondo Finance has introduced a new service for institutions to tokenize stocks using shares they already hold. This approach bypasses the need for fresh cash deposits and aims to broaden on-chain trading options.

The feature is now active on both Ethereum and BNB Chain, leveraging Alpaca's Instant Tokenization Network (ITN). Institutions with Alpaca accounts can transfer existing equity to Ondo for tokenization. The process is automated, eliminating the need for manual approval with every transaction.

After conversion, institutional clients can redeem the Ondo Stocks tokens to have their original shares returned to the Alpaca account. Conversions on Solana are not included in the current rollout.

Ondo stated that the launch of in-kind conversions is intended to help market makers replenish token inventory and provide improved liquidity for tokenized stocks.