Ondo has pushed the “stocks on-chain” concept one step further, but this time it’s not just about adding a new access point.
According to Cointelegraph, Ondo Stocks has introduced a physical conversion mechanism. Approved institutions can directly mint tokenized shares from the stocks and ETF units they already hold, or redeem the underlying securities in reverse. The process is supported by Ondo and Alpaca’s ITN, and it currently covers Ethereum and BNB Chain. Market commentary is generally bullish on ONDO and the RWA tokenized securities sector.
In practical terms, this looks more like smoothly moving traditional market-making inventory onto the blockchain, rather than merely changing the packaging. It may help reduce capital usage, improve secondary market depth, and tighten bid-ask spreads. But whether it can create lasting impact ultimately depends on the scale of institutional adoption, and whether on-chain trading volumes can keep up.
One more point worth watching: if institutions onboard faster, will the RWA narrative continue to be amplified? Another question is: if trading activity doesn’t scale up in tandem, will this mechanism improve the user experience first, or will it primarily test liquidity? Which side are you more focused on?
Source: Cointelegraph
Figure 1: Ondo opens up stock physical subscribe/redemption channels · Key takeaways
Image source: https://cointelegraph.com/news/ondo-lets-institutions-convert-stocks-directly-into-tokenized-shares?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound
According to Cointelegraph, Ondo Stocks has introduced a physical conversion mechanism. Approved institutions can directly mint tokenized shares from the stocks and ETF units they already hold, or redeem the underlying securities in reverse. The process is supported by Ondo and Alpaca’s ITN, and it currently covers Ethereum and BNB Chain. Market commentary is generally bullish on ONDO and the RWA tokenized securities sector.
In practical terms, this looks more like smoothly moving traditional market-making inventory onto the blockchain, rather than merely changing the packaging. It may help reduce capital usage, improve secondary market depth, and tighten bid-ask spreads. But whether it can create lasting impact ultimately depends on the scale of institutional adoption, and whether on-chain trading volumes can keep up.
One more point worth watching: if institutions onboard faster, will the RWA narrative continue to be amplified? Another question is: if trading activity doesn’t scale up in tandem, will this mechanism improve the user experience first, or will it primarily test liquidity? Which side are you more focused on?
Source: Cointelegraph
Figure 1: Ondo opens up stock physical subscribe/redemption channels · Key takeaways
Image source: https://cointelegraph.com/news/ondo-lets-institutions-convert-stocks-directly-into-tokenized-shares?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound
