Ondo Launches Tokenised Model Portfolios Built on BlackRock Strategies

Ondo Finance has launched Ondo Intelligent Portfolios, a suite of tokenised investment portfolios in which a single onchain token gives holders exposure to a weighted basket of tokenised assets.

The first three are based on strategies developed by BlackRock for Ondo: Ondo High Income Powered by BlackRock (BLKHIon), Ondo Diversified Growth Powered by BlackRock (BLKDIGon) and Ondo High Growth Powered by BlackRock (BLKGRWon).

According to the announcement, investors mint or redeem one token instead of managing each position individually. Ondo implements the allocations using tokenised equities and ETFs, rebalancing is handled at the smart contract level, and the constituents, weights and rebalancing activity are all visible onchain. The tokens can be transferred across wallets, exchanges and DeFi protocols at any time, which Ondo presents as the main advantage over conventional ETFs bound by market hours and geography.

"Portfolios like these have never been available onchain. Now, they are made accessible onchain, transferable at any time, and usable across DeFi," said Ian De Bode, Ondo's acting chief executive and president. Lisa O'Connor, BlackRock's global head of model portfolio solutions, said the launch "shows how established portfolio construction approaches can be delivered through new channels and technologies."

The "Powered by BlackRock" branding overstates the asset manager's involvement. The release states that BlackRock provided nondiscretionary model portfolio strategies to Ondo's specifications and that it is not the investment adviser, sub-adviser, portfolio manager, sponsor, promoter, underwriter or distributor of the products, and "exercises no discretion over" them. The tokens are issued by Ondo Global Markets. Neither the announcement nor the release names the underlying holdings or target weights, or discloses fees and minimums.

The products are not available to US investors, as the tokens have not been registered under the Securities Act of 1933. In the EU and EEA they are offered under a prospectus approved by Liechtenstein's Financial Market Authority, and in the UAE certain tokens trade on Nest Exchange, Binance's venue in Abu Dhabi Global Market.

The launch extends an existing relationship. Ondo's tokenised Treasury product OUSG has held shares of BlackRock's BUIDL fund since 2024, and Ondo's tokenised stock platform now lists more than 450 securities, according to its website. The open question is whether offshore buyers of tokenised stocks want a packaged allocation, and how quickly Ondo adds strategies from other managers, since its announcement describes BlackRock as only the first strategy provider.