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In-kind conversion is now the operational standard for Ondo Finance's institutional tokenized stock and ETF offerings.
Approved institutions can mint and redeem these digital assets using the underlying securities rather than cash. This mechanism removes the friction of liquidating positions to access on-chain liquidity.
The conversion mechanics The system allows institutions to deposit physical shares or exchange-traded fund units directly into the protocol.
In return, they receive a corresponding amount of tokenized shares on the Solana network. The reverse process works the same way. An institution can redeem the tokens for the original securities.
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