Ondo Finance and Alpaca Introduce In-Kind Minting for Tokenized Stocks

Ondo Finance has introduced a new in-kind minting and redemption feature for its institutional Ondo Stocks users, enabling eligible institutions to contribute existing equity inventory directly rather than converting shares to cash first. This innovative service currently supports tokenized positions on both Ethereum and BNB Chain.

The integration with Alpaca’s Instant Tokenization Network allows qualified institutional users to deposit their existing share inventory, streamlining the process of creating tokenized exposure. This eliminates the need for institutions to sell shares, convert them to cash, and then use that cash to mint tokenized stocks.

By removing this cash detour, Ondo aims to reduce settlement friction for large institutions, making tokenized equities more accessible and easier to scale. The new workflow aligns more closely with the creation-and-redemption mechanics familiar to traditional institutional investment products.

It is important to note that this service is restricted to KYC and AML-verified institutional participants, meaning it is not available for retail users. The launch of this product signifies a structural shift in how tokenized securities can be managed, making it easier for institutions to bridge conventional equity custody with tokenized ownership.

New Developments in Tokenized Stocks

Blockchain.com and the New York Stock Exchange (NYSE) have announced a partnership to create a platform for continuous trading of tokenized U.S. stocks and ETFs. This initiative aims to enhance accessibility and liquidity of U.S. equities through tokenization.

The collaboration is pending regulatory approvals and is expected to leverage NYSE’s planned digital alternative trading system (ATS) for 24/7 access to tokenized securities.

This partnership may positively influence the Ethereum market, as tokenization often utilizes blockchain platforms like Ethereum, potentially impacting its future price predictions.

Market analysts suggest a moderate positive outlook for Ethereum, with predictions indicating a potential increase in its application for tokenization.

Key points to watch include upcoming regulatory developments that could affect the timeline of the NYSE’s digital ATS and Ethereum’s market response to the growing interest in blockchain-based financial products.

New Developments in Tokenized Stocks

• The New York Stock Exchange (NYSE) has entered a preliminary agreement with Blockchain.com, potentially allowing users to trade tokenized versions of U.S. stocks and ETFs.
• Blockchain.com boasts over 44 million confirmed accounts, providing a significant user base for this initiative.
• The memorandum of understanding (MOU) between NYSE and Blockchain.com outlines a planned route into NYSE's digital alternative trading system (ATS), pending regulatory approval.
• ICE Data Services will provide Blockchain.com with crypto market data, while Blockchain.com will display live NYSE and ICE stock prices in its app.
• The NYSE aims to offer around-the-clock trading, instant share and cash transfers, stablecoin funding, and the ability to purchase partial shares.
• Token holders will retain dividends and voting rights, similar to traditional shares.
• The SEC has recently granted a five-year exemption for tokenized stocks, ensuring they carry the same rights as ordinary shares.
• Citi Institute predicts a $5.5 trillion market for tokenized assets by 2030, indicating a growing trend in this sector.

New Developments in Tokenized Stocks

• As of September 21, 2026, Ondo Finance has integrated with Alpaca's Instant Tokenization Network (ITN), enabling institutions to mint or redeem Ondo Stocks tokens for US stocks and ETFs in-kind.
• Alpaca now clears or custodizes approximately 94% of all tokenized US equities, managing over $1.5 billion in underlying stocks.
• The ITN allows institutions to mint tokens directly from their holdings in Alpaca brokerage accounts, eliminating the need for additional stock settlement.
• Alpaca raised $150 million in a Series D funding round in January 2026, increasing its valuation to $1.15 billion, followed by an additional $135 million equity raise in July 2026.
• The ITN was launched on October 2, 2025, at TOKEN2049 in Singapore and has rapidly become essential for tokenized US equity transactions.
• Alpaca partnered with Broadridge in July 2026 to integrate governance and proxy voting features for both traditional and tokenized equities.

New Developments in Tokenized Stocks

Binance has introduced a feature allowing eligible bStocks tokenized-equity holdings to be used as collateral in its Multi-Assets Mode. This enables users to maintain exposure to tokenized stocks while utilizing their collateral value for futures positions.

Previously, tokenized equities primarily served as a trading product. The new collateral functionality enhances their role within an exchange account, allowing users to keep their bStock positions while the exchange recognizes a haircut-adjusted portion of their value for margin purposes.

However, it's important to note that collateral haircuts may fluctuate with market volatility and account settings, and losses in leveraged futures positions can still jeopardize the collateral.

This development signifies a shift in how tokenized assets can be utilized, moving beyond mere price mimicry to becoming more integrated within financial products, akin to native digital assets.

Binance's new feature is subject to regional eligibility and KYC restrictions, meaning that availability may vary by jurisdiction.