Ondo launches onchain portfolio tokens based on BlackRock-developed strategies

Ondo Finance (ONDO) launched three onchain portfolio products on Thursday based on model portfolio strategies developed by BlackRock.

According to a statement shared with The Block, the products are Ondo High Income Powered by BlackRock, or BLKHIon; Ondo Diversified Growth Powered by BlackRock, or BLKDIGon; and Ondo High Growth Powered by BlackRock, or BLKGRWon. They are available to eligible investors outside the U.S. in permitted jurisdictions.

Investors mint or redeem a single token rather than handling the positions in the basket individually. In a separate press release, Ondo said holdings, weights and every rebalance are visible onchain. The tokens are transferable peer-to-peer across wallets, exchanges, and DeFi protocols.

"Portfolios like these have never been available onchain. Now, they are made accessible onchain, transferable at any time, and usable across DeFi," Ondo Finance Acting CEO and President Ian De Bode said. "By incorporating strategies drawn on BlackRock's longstanding portfolio construction experience into tokenized investment structures, eligible investors in supported jurisdictions can obtain exposure to diversified portfolio allocations through a single token."

BlackRock said its role is limited to providing nondiscretionary model portfolio strategies based on specifications supplied by Ondo. The asset manager does not manage the onchain portfolios or handle the tokenization, issuance, distribution, custody or operation of the products.

"Diversified portfolio strategies can be incorporated into tokenized investment products, enabling eligible investors to access diversified allocations through a single instrument," BlackRock Global Head of Model Portfolio Solutions Lisa O'Connor said. "It shows how established portfolio construction approaches can be delivered through new channels and technologies." 

Each portfolio token is issued by Ondo Global Markets and tokenized by Ondo Finance, and Ondo said it plans to add more onchain portfolios over time.

Ondo expands tokenized markets offering

The launch builds on BlackRock's foray into tokenization, having previously launched its BUIDL tokenized money market fund with Securitize in March 2024. Ondo subsequently moved $95 million of OUSG assets into BUIDL. BlackRock expanded its tokenization push in August with two tokenized money market products aimed at stablecoin reserves.

Ondo had already previewed the intelligent portfolios last month. John Hoffman, Ondo Finance's managing director and head of product portfolios, told The Block at the time that they would bundle tokenized equities into a single token, with Ondo Stocks having reached $1 billion in total value locked within eight months. 

The news also comes amid an ongoing dispute over control of Ondo following founder Nathan Allman's death in May. His mother, Kathleen Allman, is seeking control of the company and De Bode's removal as chief executive, alleging he assumed the role without board approval. De Bode has called the allegations "meritless."