BlackRock and Ondo Show How Tokenized Portfolios Could Change Investing

BlackRock, the world’s largest asset manager, has teamed up with Ondo Finance on Intelligent Portfolios, which package whole investment strategies into single blockchain tokens. Three portfolios built by BlackRock target high income, diversified growth and high growth. Instead of buying and rebalancing each holding, an investor holds one token that represents the strategy. Because it lives onchain, the token can move between wallets and platforms, stay visible onchain and possibly serve as loan collateral. Lisa O’Connor of BlackRock said tokenization opens new ways to deliver portfolio strategies through digital infrastructure.

From Single Assets to Onchain Portfolios

Most tokenization so far has focused on single assets such as Treasury funds, private credit, stocks and ETFs. Pantera calls the next step a shift from single securities to onchain portfolios, with fewer positions and rebalancing decisions for investors. Model portfolios held about $9.8 trillion in June, according to Broadridge. Bitwise has also launched Automated Token Portfolios with Coinbase and Glider, which keep tokenized stocks in the investor’s own wallet while software rebalances them.

AI and Tokenization Could Widen Investor Access

ARK Invest’s Tom Staudt said tokenization could open private equity, private credit, crypto and overseas markets, and AI could tailor portfolios to each person’s goals and taxes. Ondo’s John Hoffman envisions real-time, adjusting portfolios, though that needs more assets and infrastructure onchain. Tempo’s Dan Romero expects new financial products as stablecoins and tokenized assets combine.