Ondo Launches Tokenized Stocks Platform for Institutions
BITmarkets Team
Oct 01, 2026
Under the system, approved institutions can move shares from their Alpaca accounts to Ondo through an internal book transfer. Once the transfer is completed, the corresponding Ondo Stocks tokens are issued onchain. The process can also be reversed, enabling institutions to exchange their tokens for the underlying shares.
Ondo adds in-kind tokenization option
The new in-kind conversion method expands on Ondo’s existing cash-funded model. Under the previous approach, an institution holding the underlying securities would still need to provide additional cash to mint their tokenized equivalents.
With the new system, institutions can use the shares they already own to create tokenized inventory, potentially reducing the need for additional capital. Ondo said the structure could also help lower financing costs and reduce timing discrepancies between positions in traditional securities and their tokenized versions.
Institutional Access Available on Ethereum and BNB Chain
The conversions are currently supported on Ethereum and BNB Chain. Participation is limited to institutional clients approved by Alpaca, and users must maintain active accounts with both Alpaca and Ondo. The service provides institutions with a more direct connection between traditional securities and their onchain representations, allowing assets to move between the two formats without requiring a separate cash-funded transaction.
Ondo ranks among largest tokenization platforms
Ondo has become one of the largest tokenization platforms by onchain asset value. According to RWA.xyz data, the platform has approximately $3.63 billion in distributed assets across 441 products, placing it second behind Securitize.
Sources:
https://cointelegraph.com/news/ondo-lets-institutions-convert-stocks-directly-into-tokenized-shares
