Ondo Launches BlackRock Portfolio Tokens on the Blockchain
The tokens are meant for eligible markets outside the U.S. and make BlackRock strategies transferable through wallets, exchanges, and DeFi. BlackRock had already moved into tokenized funds with BUIDL.
Key Takeaways
- Ondo Finance launched three onchain portfolio tokens based on BlackRock model portfolios.
- The tokens are meant for eligible markets outside the United States and make minting, redeeming, and transferring through wallets, exchanges, and DeFi possible.
- BlackRock is continuing to expand its tokenization strategy with multiple onchain products, while Ondo wants to add more onchain portfolios.
Ondo Finance has launched three onchain portfolio tokens based on BlackRock model portfolios. The products are meant for eligible markets outside the United States and let investors mint or redeem a single token instead of managing separate positions in the basket itself.
Three New Portfolio Tokens
The new products are called Ondo High Income Powered by BlackRock, Ondo Diversified Growth Powered by BlackRock, and Ondo High Growth Powered by BlackRock. According to Ondo, holdings, weights, and every rebalance are visible onchain. The tokens are also transferable between wallets, crypto exchanges, and DeFi protocols.
Ondo says this setup makes it possible to use a complete strategy through one token. That should make management easier than if investors had to hold or move each part of the portfolio separately. BlackRock also stressed that it only provides nondiscretionary model portfolio strategies based on Ondo's specifications, and is not involved in tokenization, issuance, distribution, custody, or operations of the products.
BlackRock Keeps Pushing Tokenization
The launch fits into BlackRock's broader move toward tokenization. The company already launched the BUIDL tokenized money market fund with Securitize in March 2024. That fund structure later grew into the largest tokenized fund in the market, with more than $2.6 billion (€2.3 billion) in assets under management according to the provided context.
In August, BlackRock also expanded its tokenization approach with two new onchain money market products aimed at stablecoin reserves. That shows the asset manager sees tokenization as more than just experiments now, but as multiple product lines offered through blockchain infrastructure.
Why This Matters for Europe
For European crypto followers, this is especially relevant because it shows how traditional asset managers and crypto infrastructure are moving closer together. Ondo is targeting investors outside the U.S., in eligible jurisdictions, and pairing a well-known name from traditional finance with a token structure that can also be used inside DeFi. That could be interesting for the broader debate over how tokenized investment products develop outside the U.S. market.
Ondo also said it plans to add more onchain portfolios in the future. The company had already announced the smart portfolio structures last month, while a separate dispute is playing out over control of Ondo after the death of founder Nathan Allman in May. According to the earlier report, his mother Kathleen Allman is trying to gain control of the company and wants Ian De Bode removed as CEO. De Bode says those accusations are unfounded.
