Ondo Finance and Alpaca Launch In-Kind Minting for Tokenized Stocks

Ondo Finance is stripping away one of the most significant hurdles in institutional asset tokenization: the mandatory conversion of shares to cash. Through a new integration with Alpaca’s Instant Tokenization Network, eligible institutional investors can now move existing equity inventory directly on-chain, streamlining the bridge between traditional finance and the digital ecosystem.

Eliminating the "Cash Detour"

The new in-kind flow fundamentally alters the mechanics for institutions that already hold underlying securities. Traditionally, moving these assets to a blockchain required a "cash detour"—selling shares, transferring the liquidity, and then minting tokenized versions. By allowing the direct contribution of equity inventory, Ondo and Alpaca are significantly reducing settlement friction and costs. This service currently supports tokenized positions on both the Ethereum and BNB Chain networks, bringing the workflow closer to the familiar creation-and-redemption mechanics used in other institutional investment products.

A Structural Shift for Institutional Scaling

While the development is a major milestone for the industry, it is strictly a structural tool for the professional market rather than a retail product. The service is restricted to KYC and AML-verified institutional participants, meaning it isn't a "buy" button for the general public but rather a scaling solution for large-scale players. By making the transition between conventional custody and tokenized ownership less cumbersome, Ondo and Alpaca are positioning tokenized securities as an integrated extension of the global market rather than an isolated alternative.