Ondo Unlocks Institutional-Grade Tokenization Solution
Ondo Finance has introduced an innovative solution to bridge the gap between traditional securities and blockchain-based assets. The company now allows approved institutions to convert legacy shares into tokenized stocks and ETFs without requiring cash investment.
The new in-kind conversion route uses Ondo Stocks and Alpaca's Instant Tokenization Network on Ethereum and BNB Chain. This enables institutions to create tokens from their existing share inventory, potentially increasing liquidity in the secondary market and reducing funding friction.
Ondo believes that this solution will benefit market makers and other institutional liquidity providers by allowing them to convert shares to tokens quicker to meet demand on secondary trading venues.