The US Broker-Dealer Alpaca has launched an Instant Tokenization Network (ITN) that allows institutions to mint and redeem US tokenized stocks directly, a step that can help boost onchain liquidity in a tokenization market segment still forcing barriers structures.
ITN allows institutions to token portfolios with a single API call and redeemed tokens types for underlying share without settlement delays, Alpaca revealed Wednesday. The service operates despite the traditional market time, offering a 24/7 access.
By allowing in-kind redemption-direct exchanging tokens for their underlying properties rather than settlement in the cash-the network aims to make stock tokens more fluid and efficient.
Alpaca said the feature constitutes the US Securities and Exchange Commission’s (SEC) recent efforts to meet similar efficiency in the Crypto Exchange-Traded Product (ETP) market, especially by this Approval of in-kind creation and redemption for the spot bitcoin (Btc) and ether (Eth) Etfs.
ITN is available at US-Regulated financial institutions, Alpaca told cointelegraph.
“The ITN process is best understood as a single API that gives up two functions,” said Arush Sehgal, head of Alpaca’s crypto, told Cointelegraph.
“The first is the journal of security to and from broker accounts. This applies to US financial institutions,” he said. “The second is the delivery of the tokens of their authorized participant, which is usually a non-US entity associated with the US institution that introduced the journal of shares in the step one.”
Alpaca has issued an underlying infrastructure for recent tokenization initiatives, including The Ondo Finance platform for tokenizing stock and ETF and Xstocks platform for tokenized equities.
Related: Solana Foundation, Bitget Wallet Join the ‘Market Alliance’ of Ondo Finance
Wall Street, SEC is in contact with tokenization
The tokenization of real-world assets has emerged as one of the well-known blockchain trends in 2025, with more than $ 31 billion in property now represented by Onchain, according to industry data.
In the United States, the movement gets traction with support from regulators: Sec Chair Paul Atkins Described tokenization as a “change” In the comments delivered in July.
Then US Treasury Bonds and Private Credit Leading the early wave of tokenization, the tokenized stocks appear to be the next border.
“There is no doubt that it has a huge impact on Trade,” said Rob Hadick, general partner in the Crypto Venture Capital Firm Dragonfly, Talking to Cointelegraph At the token2049 Conference in Singapore. He noted that traditional finances were increasingly drawn to features such as 24/7 trading.
Hadick, however, warned that institutional players were cautious about sharing the blockchain infrastructure on retail-oriented projects.
“They want to control things like privacy (and) who the validator is set, they want to control what is happening in their implementation environment,” he said.
Shift came in the middle of reports that the The SEC considers a plot That can allow traditional to evenly trade with blockchain networks in a way similar to cryptocurrencies.
https://www.youtube.com/watch?v=owvy6LP9W2A
Magazine: Robinhood’s tokenized stocks provoked a legal hornet’s nest
