Ondo has launched a new in-kind conversion system that enables approved institutions to mint and redeem tokenized stocks and ETFs using the underlying securities instead of cash. This move aims to streamline the process of exchanging tokenized assets by leveraging the actual securities backing them.
According to CoinTelegraph, the system allows for a more efficient and potentially cost-effective method for institutions to handle tokenized financial products, reducing reliance on cash settlements. This development could enhance liquidity and operational flexibility within the tokenized asset market.
For Japanese investors and market participants, Ondo’s innovation aligns with growing interest in tokenized assets as Japan continues to explore digital asset integration within its financial ecosystem.