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BlackRock to Launch Tokenized Investment Portfolios via Ondo Finance
BlackRock, a leading global asset manager, is set to tokenize three of its investment portfolios using technology from Ondo Finance. This initiative will allow investors to access BlackRock's investment strategies through digital tokens, marking a significant step in the integration of blockchain technology within traditional finance. The portfolios will include strategies focused on high income, diversified growth, and high growth, as reported by the Wall Street Journal.
Ondo Finance will issue tokens representing each of the three portfolios, which will consist of a mix of stock, bond, and Bitcoin exchange-traded funds. When investors purchase these tokens, a software system will automatically acquire shares of the underlying ETFs. The initial offering of these products will be available to investors outside the United States, providing them with the ability to trade the tokens around the clock and use them as collateral for borrowing, although token holders will not have direct shareholder rights in the underlying securities.
The move comes as the use of model portfolios has surged, with a recent survey indicating that 87% of financial advisers utilize them, and assets in model portfolios reaching $9.8 trillion as of June 2026. BlackRock previously launched its first tokenized money-market fund in 2024 and has shown a commitment to exploring tokenization, having invested in the firm Securitize. Other financial institutions, including JPMorgan Chase and Invesco, are also entering the tokenization space, reflecting a growing trend in the industry.
Source: KLEA News