Ondo Lets Institutions Swap Real Stocks for Tokenized Shares
Ondo's in-kind conversion system lets approved institutions mint and redeem tokenized stocks and ETFs using actual securities, not cash.
Ondo just made tokenized equities a lot more serious. The firm's new in-kind conversion system lets approved institutions mint and redeem tokenized stocks and ETFs by depositing the underlying securities directly — no cash required. That's a fundamentally different model from what most tokenization platforms have been running.
Why does this matter? Because cash-based conversion creates friction and tax headaches. If you're a large institution sitting on a block of Apple or an S&P 500 ETF, you don't want to sell it, take the tax hit, then buy a tokenized version. In-kind conversion skips that entire mess. You hand over the security, you get the token. Clean.
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This move positions Ondo squarely in the institutional lane — not the retail crypto lane. "Approved institutions" is doing a lot of work in that sentence. Access is gated, which means this isn't something a solo trader can plug into today. But it signals where the tokenized asset market is heading: tighter integration with traditional finance infrastructure, not a replacement of it.
The tradeable angle here is narrative-driven. Ondo is building rails that make tokenized real-world assets (RWAs) genuinely functional for the players who control serious capital. Every step toward institutional-grade tooling is a step toward deeper liquidity and broader adoption of onchain equities. Watch how competitors respond — because they will.
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