Ondo has launched a new in-kind system that lets approved institutional players mint and redeem tokenized stocks and ETFs by transferring the underlying securities instead of cash. This model removes the need for cash settlements when creating or redeeming tokenized assets, relying instead on direct transfers of the actual securities.

How in-kind conversion works

With the in-kind setup, approved institutions can hand over underlying stocks or ETF shares to mint their tokenized equivalents, or return the tokens to get the corresponding securities back. This process is built for pro market participants and is all about settling with the actual assets, not cash.

Why it matters

By ditching cash for issuance and redemption, tokenization becomes less dependent on fiat and streamlines the workflow for institutional players. The in-kind approach makes working with tokenized stocks and ETFs feel a lot more like traditional securities operations, potentially speeding up their adoption in mainstream institutional processes.