$ONDO Ondo enables institutions to convert shares directly into tokenized shares
Ondo Finance introduced a method that allows eligible institutions to convert shares and exchange-traded funds directly into their tokenized counterparts, or redeem tokens for the underlying shares.
Under the new system, approved institutions can move shares from their accounts at Alpaca to Ondo via an internal transfer between ledgers, and then Ondo Stocks tokens corresponding to those shares are issued on-chain. The process also works in reverse, enabling institutions to redeem tokens for the underlying shares.
An in-kind transfer option has been added to the current Ondo model that is funded in cash. Under this setup, the institution that already holds the underlying shares must provide separate cash to issue the corresponding tokens.
The new route allows institutions to use those shares instead, which could reduce the amount of additional capital needed to create a tokenized inventory. Ondo said the change may also lower financing costs and timing differences between traditional shares and tokenized positions.
Transfers are currently available on Ethereum and BNB Chain. Access is limited to institutional customers that Alpaca supports, and participants must have active accounts with both Alpaca and Ondo.
$ZEC
Ondo Finance introduced a method that allows eligible institutions to convert shares and exchange-traded funds directly into their tokenized counterparts, or redeem tokens for the underlying shares.
Under the new system, approved institutions can move shares from their accounts at Alpaca to Ondo via an internal transfer between ledgers, and then Ondo Stocks tokens corresponding to those shares are issued on-chain. The process also works in reverse, enabling institutions to redeem tokens for the underlying shares.
An in-kind transfer option has been added to the current Ondo model that is funded in cash. Under this setup, the institution that already holds the underlying shares must provide separate cash to issue the corresponding tokens.
The new route allows institutions to use those shares instead, which could reduce the amount of additional capital needed to create a tokenized inventory. Ondo said the change may also lower financing costs and timing differences between traditional shares and tokenized positions.
Transfers are currently available on Ethereum and BNB Chain. Access is limited to institutional customers that Alpaca supports, and participants must have active accounts with both Alpaca and Ondo.
$ZEC
