Ondo Finance has introduced in-kind minting and redemption for institutional users of Ondo Stocks. Eligible institutions can now deposit existing equity holdings directly instead of converting shares to cash first. The service supports tokenized positions on Ethereum and BNB Chain and is not available to retail users.
Ondo Finance is eliminating one of the more cumbersome steps in institutional stock tokenization: converting existing share inventory to cash before moving it onchain. Through a partnership with Alpaca’s Instant Tokenization Network, eligible institutional users can now contribute existing equity inventory directly to mint Ondo Stocks positions.
Shares Can Enter the Tokenized System Without a Cash Detour
This new in-kind process changes how institutions that already hold the underlying securities operate. Rather than selling shares, moving cash, and then using that cash to create tokenized exposure, qualified users can deposit their existing inventory directly. Ondo says the mechanism supports minting and redemption on Ethereum and BNB Chain. For large institutions, this can reduce settlement friction and make tokenized equities feel less like a separate market that must be funded from scratch. It also aligns the workflow more closely with the creation-and-redemption mechanics familiar from other institutional investment products.
Retail Users Are Not the Target
The service is limited to KYC- and AML-verified institutional participants. This is not a new feature that lets ordinary retail users convert 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 essentially 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.
Frequently Asked Questions
FAQs Ondo and Alpacas InKind Minting for Tokenized Stocks
Beginner Questions
What is Ondo Finance
Ondo Finance is a platform that brings traditional investments like US stocks and bonds onto the blockchain as tokens
What is Alpaca
Alpaca is a USregulated brokerage that provides the infrastructure for buying and holding real stocks and ETFs
What are tokenized stocks
Tokenized stocks are blockchain tokens that represent shares of real companies Each token is backed by actual stock held by a regulated custodian
What is inkind minting
Inkind minting means you deposit the actual stock or asset to receive the token version of it instead of paying cash first and having the platform buy the stock for you
What did Ondo and Alpaca just launch
They added inkind minting for tokenized stocks Now approved users can deposit real shares through Alpaca and receive tokenized versions of those shares from Ondo
How is this different from the old way
Before youd pay cash and the platform would buy the stock and issue tokens Now you can bring the stock you already own and convert it directly into tokens
Do I need crypto experience to use this
Not necessarily but you do need a wallet and some familiarity with blockchain transactions to hold and manage the tokens
Who can use this service
Its typically limited to eligible verified users in supported jurisdictions Check Ondos and Alpacas current eligibility rules
Benefits and Use Cases
Why is inkind minting useful
It lets you move existing stock holdings onto the blockchain without selling first which can avoid triggering a taxable sale and saves on transaction costs
What are the main benefits
No need to sell your shares faster minting lower friction and access to 247 onchain trading and DeFi use cases
Can I use the tokens in DeFi
Yes Once minted the tokens can potentially be used as collateral traded or transferred onchain depending on the platforms rules
Does this help with taxes
Inkind minting may not count as a sale so it could avoid a taxable event but rules vary by country Always check with a tax professional
Who is this for
Its aimed at investors who already hold US