Ondo launches three onchain portfolio tokens using BlackRock model strategies
Ondo puts three BlackRock-linked portfolios onchain
Ondo Finance has launched three onchain portfolio tokens that follow model portfolio strategies developed by BlackRock, according to a statement The Block reported on Thursday. The products are meant for eligible investors outside the United States, in jurisdictions where they are permitted.
The portfolios are called Ondo High Income Powered by BlackRock (BLKHIon), Ondo Diversified Growth Powered by BlackRock (BLKDIGon) and Ondo High Growth Powered by BlackRock (BLKGRWon). Each one gives investors economic exposure to a weighted basket of tokenized assets, meaning assets that are represented as digital tokens on a blockchain, a shared digital record of transactions.
Key points: three tokens for eligible non-US investors
- Three products were launched: Ondo High Income Powered by BlackRock, Ondo Diversified Growth Powered by BlackRock and Ondo High Growth Powered by BlackRock.
- They are available to eligible investors outside the U.S. in permitted jurisdictions.
- Investors mint or redeem a single token instead of holding each position in the basket themselves.
- Each token is issued by Ondo Global Markets and tokenized by Ondo Finance, according to Ondo.
- Ondo said it plans to add more onchain portfolios over time.
BlackRock says it only supplied the model strategies
BlackRock said its role is limited to providing nondiscretionary model portfolio strategies based on specifications given to it by Ondo. That means BlackRock supplied the strategy models but does not make the day-to-day decisions. BlackRock also said it does not manage the onchain portfolios and does not handle tokenization, issuance, distribution, custody or operation of the products.
Lisa O'Connor, BlackRock's Global Head of Model Portfolio Solutions, said: “Diversified portfolio strategies can be incorporated into tokenized investment products, enabling eligible investors to access diversified allocations through a single instrument.” She added that this shows how established portfolio construction approaches can be delivered through new channels and technologies.
What Ondo says about how the tokens work
In a separate press release, Ondo said the holdings, weights and every rebalance are visible onchain. Rebalancing is when a portfolio's mix of assets is adjusted. Ondo also said the tokens can be transferred peer-to-peer across wallets, exchanges and DeFi protocols. A wallet is software that stores the keys controlling crypto assets, and DeFi refers to financial services run by software rather than a bank or broker.
Ian De Bode, Ondo Finance's Acting CEO and President, said: “Portfolios like these have never been available onchain. Now, they are made accessible onchain, transferable at any time, and usable across DeFi.” He added that eligible investors in supported jurisdictions can get exposure to diversified portfolio allocations through a single token.
Where this fits in BlackRock's tokenization work
The launch follows BlackRock's earlier move into tokenization. BlackRock launched its BUIDL tokenized money market fund with Securitize in March 2024, and Ondo later moved $95 million of OUSG assets into BUIDL. In August, BlackRock expanded its tokenization push with two tokenized money market products aimed at stablecoin reserves. Stablecoins are crypto tokens designed to hold a steady value, usually tied to the U.S. dollar.
Ondo had already previewed the intelligent portfolios last month. John Hoffman, Ondo Finance's managing director and head of product portfolios, told The Block at that time that the products would bundle tokenized equities into a single token, and said Ondo Stocks had reached $1 billion in total value locked within eight months. Total value locked is the amount of assets held in a protocol or product.
A leadership dispute at Ondo continues
The launch comes during an ongoing dispute over control of Ondo after founder Nathan Allman's death in May. His mother, Kathleen Allman, is seeking control of the company and the removal of De Bode as chief executive, alleging that he took the CEO role without board approval. De Bode has called the allegations “meritless.”
What is confirmed and what remains unclear
Confirmed details from the source material include the launch of the three named products, the fact that they are offered to eligible investors outside the U.S. in permitted jurisdictions, BlackRock's stated limited role in providing model strategies, and Ondo's statement that the tokens are issued by Ondo Global Markets and tokenized by Ondo Finance.
Several things are not specified in the supplied material. The sources do not list which jurisdictions permit the products, which assets each portfolio holds, what the portfolios have returned, or what fees are charged. The descriptions of how the tokens work, including onchain visibility of holdings and rebalancing, come from Ondo's statements rather than independent verification in the source material.
Why this matters for tokenized investing
The products tie two trends together: BlackRock's growing use of tokenization and Ondo's expansion of tokenized markets. The material shows that established portfolio construction approaches, normally delivered through traditional funds and accounts, are being offered in token form to eligible investors outside the U.S. It also shows that BlackRock is keeping its role narrow, providing only the strategy models while Ondo handles issuance and operations.
What Ondo plans next
Ondo said it plans to add more onchain portfolios over time. No timeline for additional products was given in the supplied material.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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