Ondo Finance Brings BlackRock Strategies Onchain as Tokens
Ondo Finance has launched three onchain portfolio tokens based on BlackRock-developed model strategies, giving eligible non-U.S. investors in permitted jurisdictions access to diversified portfolios through a single transferable token.
Ondo Finance is expanding the idea of tokenization beyond individual securities with a new product category that packages entire investment strategies into transferable tokens.
The company announced Sept. 24 that its Ondo Intelligent Portfolios are designed to let eligible investors outside the United States access professionally constructed portfolios through the wallets, exchanges and decentralized finance applications they already use, where permitted.
Three Portfolios Launch With BlackRock Strategies
The initial lineup includes three products, each with a defined allocation and scheduled rebalancing:
- Ondo High Income Powered by BlackRock (BLKHIon)
- Ondo Diversified Growth Powered by BlackRock (BLKDIGon)
- Ondo High Growth Powered by BlackRock (BLKGRWon)
The portfolios are established with target weights at inception and rebalanced according to a fixed schedule. Rather than requiring investors to buy and manage multiple positions separately, each portfolio is represented by a single token that can be minted or redeemed.
The structure is aimed at making diversified portfolio exposure easier to hold and transfer while keeping the underlying allocation transparent and rule-based.
How Ondo Intelligent Portfolios Work
Ondo describes the products as operating across three main layers.
First, a third party provides a portfolio allocation or strategy. In this launch, BlackRock supplies the model strategies, while Ondo determines how those models are implemented within its products.
Second, Ondo executes the strategy programmatically. The underlying holdings are Ondo Stocks, tokenized equities and ETFs backed by real securities and sourced through market liquidity. According to Ondo, allocation, rebalancing and fee logic are encoded in smart contracts and executed automatically.
Finally, investors hold one token representing the portfolio exposure. That means they do not need to manually assemble positions or periodically rebalance the basket themselves.
Ondo said the model is intended to reduce the time and operational burden associated with maintaining a diversified portfolio. Its institutional trading infrastructure handles the underlying execution and scheduled rebalancing.
“Portfolios like these have never been available onchain. Now, they are made accessible onchain, transferable at any time, and usable across DeFi.”
Ian De Bode, Acting CEO and President of Ondo Finance, described the launch as an important step in the development of onchain investment products, particularly by bringing diversified portfolio allocations into a tokenized structure.
BlackRock Provides Models, Not Portfolio Management
BlackRock’s role in the products is narrower than direct asset management. The firm said it is providing nondiscretionary model portfolio strategies based on specifications supplied by Ondo.
BlackRock is not responsible for managing the onchain portfolios or for their tokenization, issuance, distribution, custody or day-to-day operation.
Lisa O’Connor, Global Head of the Model Portfolio Solutions team and Co-CIO for Global Solutions within BlackRock’s Multi-Asset Strategies group, said:
“Tokenization creates new ways for portfolio strategies to be delivered through digital infrastructure.”
She said diversified strategies can be incorporated into tokenized investment products, allowing eligible investors to access multiple allocations through a single instrument.
From Tokenized Assets To Tokenized Strategies
The launch builds on BlackRock’s broader move into blockchain-based financial products. In March 2024, the asset manager launched the BUIDL tokenized money market fund with Securitize. Ondo later moved $95 million of OUSG assets into BUIDL, while BlackRock expanded its tokenization efforts in August with two additional tokenized money market products targeting stablecoin reserves.
Ondo’s latest products represent a different application. Instead of tokenizing one fund or security, the company is putting a complete portfolio strategy into a transferable onchain wrapper.
For eligible investors in supported jurisdictions, that could make portfolio construction and rebalancing more accessible through blockchain infrastructure. More broadly, the launch points toward a market where tokenization is not limited to representing existing assets onchain, but increasingly becomes a way to package, distribute and automate investment strategies themselves.
Learn More with CryptoPulse.News
- What Is Tokenization and How It Transforms Finance
- What Are Tokenized Stocks and Why They Matter
- What Are Real-World Assets (RWA) in Crypto
- What Is DeFi? A Simple Guide to Decentralized Finance
