Ondo Finance Simplifies Institutional Stock Tokenization with In-Kind Minting

Ondo Finance has made it easier for institutional investors to tokenized stocks by adding in-kind minting and redemption through an integration with Alpaca's Instant Tokenization Network. This means that qualified institutions can now deposit existing equity inventory directly into the system, eliminating the need to first convert shares to cash.

The new workflow aligns with traditional creation and redemption mechanics, reducing settlement friction and making tokenized equities feel less like a separate market that needs to be funded from scratch. The service currently supports tokenized positions on Ethereum and BNB Chain, but it's worth noting that retail users are not eligible for this service.

The integration aims to make the bridge between conventional equity custody and tokenized ownership less cumbersome, allowing large institutions to reduce settlement friction and improve custody flows for crypto tokenized securities. With in-kind minting and redemption now available, Ondo Finance is removing one of the more awkward steps in institutional stock tokenization.