Secondary sale versus redemption: understanding exits
Who buys, who pays and when proceeds become available when exiting a tokenized asset.
Editorial review: 2026-11-05A transfer is not an economic exit
Sending a token to another wallet changes its location or holder, but does not establish that you have been paid. Separate four steps: permission to transfer, execution, payment settlement and withdrawal to the final destination. A continuously operating network does not mean every step is available at all times.
A secondary sale needs a counterparty
In a secondary sale, another participant acquires your position. Check for an executable offer covering the amount you want to sell, the price the buyer accepts and the costs deducted. Placing an order is not proof of execution. A partial sale does not turn the remaining balance into cash. The key question is what you actually receive, rather than the highlighted price.
Redemption is a different contractual route
Redemption uses the product’s specified mechanism to return value to the holder. Identify the obligated entity, eligible applicants and the document governing calculations, timing and restrictions. Do not assume every secondary holder qualifies. A redemption button is not acceptance of the request or a guarantee of immediate bank payment.
Two documented examples, not equivalent products
Lofty describes USDL payment when a sale executes; conversion may require compliance review. Ondo advertises stablecoin redemptions for OUSG with access limited to eligible investors. These are different mechanisms, not promises covering every token.
Compare the complete exit process
Create one row per mechanism: counterparty, eligibility, permitted amount, payment currency, price calculation, costs, calendar and final destination. Distinguish a contractual deadline from a marketing estimate. Mark missing information as unverified and retain the document link and date; do not substitute another product’s terms.
A hypothetical example and final check
Suppose you can sell part of a position to a buyer while the remainder requires an issuer request. These are two transactions with different counterparties and timelines. Before confirming, check quantity, execution status and payment currency. Afterwards, verify receipt and any outstanding conversion. This example does not describe specific Lofty or OUSG terms or guarantee liquidity.
Educational content. Not an investment recommendation.
