By Ondo Finance has launched three tokenized investment portfolios based on strategies developed by BlackRock, extending the tokenization market from individual stocks and ETFs into professionally constructed multi-asset portfolios. The Ondo Intelligent Portfolios, launched September 24, are available to eligible investors outside the United States in permitted jurisdictions. Each product packages a portfolio into a single blockchain token that can be minted, redeemed and transferred between compatible wallets, exchanges and decentralized-finance applications.
The initial lineup consists of Ondo High Income Powered by BlackRock (BLKHIon), Ondo Diversified Growth Powered by BlackRock (BLKDIGon) and Ondo High Growth Powered by BlackRock (BLKGRWon). The structure marks the first time portfolio strategies developed by BlackRock specifically for Ondo have been made available through single onchain tokens.
One Token Represents an Entire Portfolio
Rather than requiring investors to acquire and periodically rebalance numerous positions, each token provides economic exposure to a predetermined basket. Ondo implements the BlackRock model programmatically, with allocation and rebalancing handled through its infrastructure and smart contracts. Constituents, target weights and rebalances are visible onchain. The underlying positions use Ondo Stocks, which provide economic exposure to stocks and ETFs backed by securities sourced from traditional-market liquidity. Ondo stresses that these tokens are not themselves shares, ETFs or American depositary receipts and do not give holders ownership rights to the underlying securities. For example, the High Income portfolio currently contains nine underlying exposures. Its largest base allocations include 18% each to products tracking BlackRock’s iShares High Yield Systematic Bond ETF and iShares Investment Grade Systematic Bond ETF, alongside allocations linked to active and short-duration bond funds.
BlackRock’s role is also narrowly defined. The world’s largest asset manager provides non-discretionary model portfolio strategies developed according to specifications supplied by Ondo. It does not manage the onchain portfolios or perform their tokenization, issuance, distribution, custody or operation. Ondo Global Markets issues the portfolio tokens, while Ondo Finance manages, sponsors and administers the products.
Tokenization Moves From Assets to Investment Strategies
The launch represents another stage in the expansion of tokenized traditional finance. Most early real-world-asset products brought individual instruments onchain, including Treasury bills, money-market funds, stocks and ETFs. Ondo’s new structure instead tokenizes an allocation strategy, allowing one blockchain asset to represent multiple underlying exposures and automatically follow predetermined rebalancing rules. That could also expand how traditional portfolios interact with decentralized finance. Ondo says portfolio tokens can potentially be used as collateral for lending or perpetual positions, incorporated into yield products or even held within other tokenized portfolios.
BlackRock has already developed a substantial presence in tokenization. Its BUIDL tokenized money-market fund launched with Securitize in March 2024, while Ondo subsequently moved $95 million of assets backing its OUSG product into BUIDL. The new portfolios push that relationship beyond tokenizing individual financial instruments. They also highlight the regulatory divide surrounding tokenized securities. The BlackRock-powered portfolio tokens are explicitly unavailable in the United States, although Ondo has separately expanded regulated tokenized-securities infrastructure for U.S. investors. For eligible overseas investors, the September 24 launch effectively combines two developments that have largely progressed separately: institutional model-portfolio construction and blockchain-based securities infrastructure.
BlackRock supplies the portfolio methodology; Ondo turns that methodology into transferable, programmable tokens. That distinction is important. BlackRock has not launched a new blockchain ETF or assumed management of an Ondo fund. Instead, its investment models are becoming the blueprint for products that Ondo issues and operates entirely onchain.