ONDO Supporting institutions for direct conversion of shares into equity in token

ONDO Introduction of physical redemption mechanisms to support institutions in forging and redeeming underlying securities

Ondo Finance recently launched a new physical redemption system. According to public information, institutions that are eligible for access can directly use the corresponding underlying stock or ETF securities as carriers when using this system to complete the casting and redeeming of token chemical stocks and products without first converting them into cash.

This mechanism changes the traditional practice of having to settle debts in cash, providing a channel for entering and exiting securitized token assets that is closer to traditional financial operating habits.

For qualified institutions, physical redemption means a more flexible approach to asset management: an institution holding the underlying securities can directly convert them into on-chain shares or reverse-redeem them as original securities when needed. This model is similar to the redemptive mechanism in the ETF market and helps reduce friction during conversion.

With the development of RWA (real world assets) racetrack, how to create a smooth transition bridge between on-chain products and traditional securities has become one of the key concerns in the industry. ONDO This adjustment can be seen as a step towards improving its infrastructure for institutional users

It should be noted that the use of this system is aimed at approved institutions, and ordinary users are not directly involved in the redemption process.

(Risk note: This article is for public information only and does not constitute any investment advice. crypto asset and token securities are both at risk, please carefully evaluate your ability to bear them.))