Ondo and Alpaca Introduce In-Kind Minting for Tokenized Stocks
(9 days ago) · 2 sources · Summarized by CryptoBipto — how we make this
Ondo and Alpaca have partnered to add in-kind minting functionality for tokenized stocks. This mechanism allows authorized participants to deposit actual shares in exchange for tokenized versions on-chain, rather than using cash-based processes. The feature is designed to improve efficiency and transparency in the tokenized securities market.
WHY IT MATTERS
Tokenized stocks are digital versions of traditional company shares that exist on a blockchain. Think of it like converting a paper gift card into a digital one — the value stays the same, but the format changes to make it easier to use in certain settings. "In-kind minting" means you can swap actual stock shares for their tokenized equivalents directly, rather than first selling the shares for cash and then buying the tokens. This is similar to how large financial institutions create shares of ETFs by handing over baskets of stocks instead of cash. For people new to crypto, this development shows how blockchain technology is being used to bridge the gap between traditional finance and digital assets, potentially making it easier and cheaper to move between the two worlds.
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