Ondo Finance launched three onchain portfolio tokens on Thursday built on model portfolio strategies developed by BlackRock. The products give eligible non-U.S. investors exposure to weighted baskets of tokenized assets through a single token, rather than requiring them to hold each position separately.
Ondo Finance rolled out three portfolio tokens on Thursday based on model portfolio strategies developed by BlackRock. The products are Ondo High Income Powered by BlackRock, Ondo Diversified Growth Powered by BlackRock, and Ondo High Growth Powered by BlackRock, available to eligible investors outside the U.S. in permitted jurisdictions.
One token replaces a basket of positions
Investors mint or redeem a single token instead of managing each underlying position individually. Ondo said holdings, weights and every rebalance are visible onchain, and the tokens transfer peer-to-peer across wallets, exchanges and DeFi protocols. According to Live Bitcoin News, the tokens can also be used as collateral for borrowing. Because the products run through custodial facilities outside the U.S., holders do not get direct shareholder voting rights.
Ondo Finance Acting CEO and President Ian De Bode said: "Portfolios like these have never been available onchain." He added that eligible investors can now obtain exposure to diversified portfolio allocations through a single token by drawing on BlackRock's portfolio construction methods.
BlackRock's role is limited to supplying nondiscretionary model portfolio strategies based on specifications Ondo provides. The asset manager does not manage the onchain portfolios or handle their tokenization, issuance, distribution, custody or operation. Each token is issued by Ondo Global Markets and tokenized by Ondo Finance, which plans to add more onchain portfolios over time.
Part of a broader push into tokenized assets
The launch extends BlackRock's earlier tokenization work, including its BUIDL tokenized money market fund launched with Securitize in March 2024, into which Ondo later moved $95 million of OUSG assets. BlackRock expanded that push in August with two tokenized money market products aimed at stablecoin reserves.
Ondo had previewed the intelligent portfolios last month. At the time, managing director John Hoffman told The Block that Ondo Stocks had reached $1 billion in total value locked within eight months.
The launch also lands amid an ongoing dispute over control of Ondo following founder Nathan Allman's death in May, with his mother Kathleen Allman seeking control of the company and De Bode's removal — allegations he has called "meritless."
Sources: The Block, Live Bitcoin News
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