Ondo launches three tokenized BlackRock-model portfolios, but direct redemption is only for non-US investors
Ondo puts BlackRock-designed strategies on-chain
Ondo Finance launched three on-chain portfolio tokens on Sept. 24. The portfolios follow investment strategies that BlackRock developed for the company. Buyers get exposure to diversified baskets of assets, but the tokens are securities issued by Ondo. They are not interests in BlackRock funds.
Only eligible investors outside the United States who finish Ondo's onboarding checks can redeem the tokens directly with the issuer. Other holders have to find someone willing to buy the tokens from them.
Three new portfolio tokens and how they work
- The first three products are Ondo High Income (BLKHIon), Ondo Diversified Growth (BLKDIGon) and Ondo High Growth (BLKGRWon).
- Ondo's legal disclosure describes each token as a separate security issued by Ondo Global Markets (BVI) Limited.
- The weighted baskets include Ondo Stocks, which track equities and exchange-traded funds, or ETFs. An ETF is a fund that trades on a stock exchange.
- Ondo said it puts the allocations together using tokenized assets and rebalances the portfolios on a preset schedule.
- BlackRock Fund Advisors supplies the model allocations. Ondo manages, sponsors and administers the products.
What Ondo's launch documents say
Ondo published a launch release, product terms and a blog post explaining the products. Together they describe how the tokens are created and who can redeem them.
Direct minting and redemption require an eligible person outside the US to complete identity and anti-money-laundering checks, according to Ondo's FAQ. The process also screens for US-person status, restricted jurisdictions and prohibited persons. Ondo processes redemptions only for eligible holders who have completed onboarding.
The tokens are transferable on-chain, so a person can receive or hold one without going through that process, subject to jurisdictional and other restrictions. Possession alone does not qualify a holder to redeem with Ondo. Ondo says peer-to-peer transfers are available at all hours, including through supported third-party platforms.
What BlackRock does and does not do
According to Ondo's documents, BlackRock Fund Advisors provides the model allocations but does not make investment decisions for the on-chain portfolios. BlackRock does not manage the portfolios and does not owe advisory or fiduciary duties to token investors.
BlackRock is also generally not required to update its model after delivery. Ondo decides whether to apply any changes, so an on-chain portfolio may end up differing from the corresponding model.
What is confirmed
Confirmed by Ondo's own launch release, product terms and FAQ: the three products exist, Ondo issues and manages them, BlackRock Fund Advisors supplies model allocations, and direct redemption is limited to onboarded non-US investors.
This article is based on those Ondo documents and on CryptoSlate's report. The supplied material does not contain a separate statement from BlackRock, so descriptions of BlackRock's role come from Ondo's side.
What is still unclear
The supplied material does not list the restricted jurisdictions that Ondo screens for, does not give the preset rebalancing schedule, and does not set out fees, pricing or minimum amounts. It also does not say whether a US-based person could hold a token obtained through a transfer.
Why the redemption limit matters for holders
Being able to move a token between wallets is not the same as being able to redeem it with the issuer. A holder who cannot redeem directly depends on a third party willing to take the token, under that venue's rules and market conditions.
As Ondo itself notes, round-the-clock transfers do not mean a buyer will be available at a given price, or that a holder can exit immediately.
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.