Ondo Finance has launched a new institutional-grade conversion mechanism that allows eligible organizations to swap traditional shares directly for tokenized stock and ETF tokens, without first converting holdings into cash. Announced on September 21 and reported on September 22, the feature is built on Ondo Stocks and Alpaca’s Instant Tokenization Network and is currently available on Ethereum and BNB Chain.
Under the process, an approved institution initiates an internal book transfer of eligible shares from its Alpaca account to Ondo’s Alpaca account. Once the shares arrive, Ondo issues corresponding tokenized stocks or ETFs on a supported blockchain. The flow is reversible: institutions can return Ondo Stocks tokens and receive the underlying shares back in their Alpaca account.
Access remains limited. Every institution must be approved by Alpaca and complete onboarding with both Alpaca and Ondo, and activation must be requested before using the service. The two-way route is designed to reduce funding friction and may be especially useful for market makers and other liquidity providers that already hold eligible shares.
Ondo expects the change to deepen secondary-market liquidity for its tokenized assets. RWA.xyz data cited in coverage shows Ondo manages approximately $3.63 billion in assets across 441 products, positioning it as a significant player in the tokenization market.
