Ondo has launched a new in kind conversion system, which is exclusively available to approved financial institutions. This advanced system allows these institutions to effectively create new tokenized shares, representing both traditional stocks and exchange traded funds, as well as to redeem them when desired. The implementation of this system marks a notable development in the handling of digital investment products.
Crucially, this updated process permits institutions to directly utilize the underlying securities themselves for both the minting and redemption of these tokenized assets. This represents a significant departure from approaches that typically rely on cash to facilitate such transactions. By enabling the direct exchange of physical securities for their digital tokenized counterparts, Ondo provides a more flexible and asset based method for institutional engagement with digital securities.