Ondo Launches Onchain Portfolio Tokens Built on BlackRock Strategies

Ondo Finance has rolled out three onchain portfolio products based on model strategies developed by BlackRock. The tokens are Ondo High Income (BLKHIon), Ondo Diversified Growth (BLKDIGon) and Ondo High Growth (BLKGRWon). They are open to eligible investors outside the US in permitted jurisdictions. Ondo Global Markets issues each token, and Ondo Finance tokenizes it. More portfolios are planned over time.

How Tokenized Portfolio Tokens Work

Investors mint or redeem one token instead of handling each holding in the basket. Ondo says holdings, weights and every rebalance are visible onchain, and the tokens can move between wallets, exchanges and DeFi protocols. Acting CEO and President Ian De Bode said portfolios like these have never been available onchain, and that investors can now get diversified exposure through a single token.

BlackRock’s Limited Role

BlackRock says it only provides nondiscretionary model portfolio strategies based on Ondo’s specifications. It does not manage the onchain portfolios or handle tokenization, issuance, distribution, custody or operations. Lisa O’Connor, its Global Head of Model Portfolio Solutions, said established portfolio approaches can now reach investors through new channels.

Ondo and BlackRock Tokenization Background

BlackRock launched its BUIDL tokenized money market fund with Securitize in March 2024, and Ondo later moved $95 million of OUSG assets into it. In August, BlackRock added two tokenized money market funds for stablecoin reserves. Ondo previewed these portfolios last month, and Ondo Stocks has reached $1 billion in total value locked within eight months.

Ondo Leadership Dispute

The launch comes during a dispute over control of the company after founder Nathan Allman’s death in May. His mother, Kathleen Allman, wants control of Ondo and De Bode removed, claiming he took the CEO role without board approval. De Bode calls the allegations meritless.