Question 1

What is BABAon?

Accepted Answer

BABAon is a tokenized Alibaba asset in the Ondo Stocks product suite, with Alibaba Group Holding Limited's BABA American depositary shares (ADS) as its underlying asset. It gives holders on-chain economic exposure related to the value of that underlying asset, rather than direct ownership of or entitlement to receive BABA ADS. Accordingly, changes in the BABA ADS price and economic effects related to dividend value may affect BABAon's value performance; Ondo also states that the related dividend economic exposure is reduced by applicable withholding taxes. The token can be transferred on-chain, but its legal nature and holder rights must not be confused with those of the underlying ADS.

Question 2

Does holding BABAon mean holding Alibaba stock?

Accepted Answer

No. BABAon is not Alibaba stock or BABA ADS, and holders do not obtain rights to hold or receive the corresponding underlying assets. It provides economic exposure to the value of the underlying asset, including dividend-value exposure adjusted for applicable withholding taxes; this is different from directly owning securities as a shareholder or ADS holder.

Question 3

How much BABA does one BABAon correspond to?

Accepted Answer

As shown on the asset page, 1 BABAon corresponds to 1.0089 BABA ADS. This figure describes the underlying-share basis associated with the token. This correspondence does not mean that holders can withdraw 1.0089 BABA ADS; BABAon provides economic exposure to the underlying asset, and the token itself does not confer the right to receive the underlying securities.

Question 4

Is the quantity of BABAon fixed?

Accepted Answer

The quantity of BABAon changes with minting and redemption. It should be understood by focusing on the corresponding backing assets, rather than treating it as an ordinary cryptocurrency with a preset fixed cap. Ondo states that Ondo tokenized stocks are fully backed by the corresponding stocks or ETFs and cash in transit. When eligible users mint tokens, the product supports the newly issued tokens with corresponding backing assets and liquidity arrangements; when tokens are redeemed, the token quantity correspondingly exits that process. An independent verification firm reviews the backing daily, and a third-party security agent holds a first-priority security interest in the collateral for the benefit of token holders.

Question 5

Can BABAon be freely redeemed?

Accepted Answer

BABAon is not unconditionally redeemable by everyone at all times. Ondo Stocks provides minting and redemption to eligible users outside the United States; when available, tokenized stocks can be redeemed for stablecoins based on the cash value of the underlying assets. The usual availability window is 24 hours a day, 5 days a week, with 24/7 service available for some assets; special closures of the underlying market, scheduled system maintenance, outages, or other extraordinary events can affect availability. Redemption provides cash value, not direct delivery of BABA ADS.

Question 6

Why might BABAon's price not fully match BABA ADS?

Accepted Answer

The price of BABAon and BABA ADS is not necessarily exactly the same on every trade. The underlying price and tax-adjusted dividend economic exposure form its value linkage, while minting, redemption, and traditional exchange liquidity are intended to connect the token market with the underlying value. However, when redemption is unavailable, on-chain trading liquidity is insufficient, or market abnormalities occur, secondary-market transaction prices may deviate from that economic exposure; therefore, the underlying ADS quotation cannot be directly equated with BABAon's transaction price at any given time.

Alibaba Ondo Tokenized (BABAON) Price

Price of Alibaba Ondo Tokenized (BABAON) Today in USD