Ondo Finance has launched three onchain portfolio products built around model investment strategies developed by BlackRock.
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 United States in permitted jurisdictions. Rather than buying and managing each asset in a portfolio separately, investors can mint or redeem one token representing the allocation.
Ondo said the assets held in each portfolio, their weightings and every subsequent rebalance will be visible onchain. The tokens can also be transferred directly between 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,” said Ian De Bode, Acting CEO and President of Ondo Finance.
“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 stressed that its involvement is limited to supplying nondiscretionary model portfolio strategies based on specifications provided by Ondo.
The asset manager does not manage the onchain portfolios and is not responsible for their tokenisation, issuance, distribution, custody or operation.
“Diversified portfolio strategies can be incorporated into tokenized investment products, enabling eligible investors to access diversified allocations through a single instrument,” said Lisa O’Connor, BlackRock Global Head of Model Portfolio Solutions.
“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. Ondo said it intends to introduce additional onchain portfolios in the future.
Expanding tokenised investments
The launch extends BlackRock’s existing activity in tokenisation. In March 2024, it introduced the BUIDL tokenized money market fund with Securitize. Ondo later transferred $95 million of OUSG assets into BUIDL.
BlackRock continued its tokenisation push in August with two tokenized money market products designed for stablecoin reserves.
Ondo previewed the new portfolios last month. John Hoffman, Ondo Finance’s managing director and head of product portfolios, told The Block that the products would combine tokenized equities into a single token.
Ondo Stocks reached $1 billion in total value locked within eight months, according to the report.
The launch comes as Ondo remains involved in an ongoing dispute over control of the company following the death of its founder, Nathan Allman, in May.
His mother, Kathleen Allman, is seeking control of the company and the removal of De Bode as chief executive. She alleges that he took the role without board approval.
De Bode has described those allegations as “meritless”.
