Ondo Enables Institutional Conversion of Stocks to Tokenized Shares

VERA Brief

AI-generated. Grounded in the article and its cited sources.

Ondo Finance has introduced a new system for institutional investors to convert stocks and ETFs into tokenized shares. This system allows for direct exchange of underlying securities, bypassing cash transactions.

Key facts

• Ondo Finance has launched a new in-kind conversion system for institutional investors.
• Approved entities can mint and redeem tokenized stocks and ETFs using underlying securities.
• This system bypasses the need for cash transactions in the conversion process.
• The development aims to streamline the conversion of traditional equities into blockchain-based tokens.
• Institutions can use existing holdings of stocks and ETFs to acquire tokenized equivalents.