Summary

• Ondo Finance launched three portfolio tokens based on BlackRock-developed strategies, giving eligible investors diversified exposure through a single transferable token.
• Each portfolio holds tokenized equities and ETFs, with smart contracts managing scheduled rebalancing and displaying changes on-chain for eligible investors.
• Access excludes US investors, while supported DeFi applications may accept the tokens as collateral under their respective terms and conditions.

Ondo Finance announced in a press release that three portfolios based on BlackRock-developed strategies are available as transferable onchain tokens. Each token gives eligible investors exposure to a diversified basket through one holding, bringing managed allocations into Ondo’s existing product range.

Investors can hold the tokens in wallets and transfer them between supported onchain services, subject to the products’ eligibility rules. BlackRock developed the strategies for Ondo, while Ondo determines how each strategy operates and manages rebalancing under its product rules.

The opening lineup includes Ondo High Income, a global income strategy with the ticker BLKHIon, and Ondo Diversified Growth, or BLKDIGon. Ondo High Growth, which trades as BLKGRWon, offers a separate allocation designed for investors seeking greater growth exposure.

Together, the three products give investors different portfolio choices without requiring them to purchase and maintain every underlying asset separately. Ondo sets each portfolio’s initial holdings and target weights, then adjusts those holdings according to a fixed rebalancing schedule.

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BlackRock Strategies Guide Allocations While Ondo Operates the Portfolios

The portfolios hold Ondo Stocks, which are tokens linked to equities and exchange-traded funds backed by underlying securities. Smart contracts govern allocation, rebalancing, and fees, while onchain records show investors the holdings and changes within each portfolio.

Lisa O’Connor, a BlackRock executive in its multi-asset strategies group, described tokenization as another way to distribute portfolio strategies. “Tokenization creates new ways for portfolio strategies to be delivered through digital infrastructure,” she stated.

Investors can mint or redeem a portfolio token to enter or leave its underlying allocation through a single transaction. Ondo Global Markets issues the portfolio tokens, while Ondo Finance tokenizes them and provides the infrastructure supporting their onchain use.

BlackRock’s role centers on developing the investment strategies, while Ondo handles their implementation within the tokenized products. That distinction also applies to rebalancing, which Ondo carries out according to each product’s rules and schedule.

Eligibility Rules Apply to Transfers and DeFi Use

Ondo offers the portfolios to eligible investors outside the United States in permitted jurisdictions, despite their ability to move between wallets. Token holders may use them in supported DeFi applications, although each application determines which assets it accepts and under what terms.

Ondo Finance Acting CEO and President Ian De Bode described the combination of portfolio exposure and onchain transferability. “Portfolios like these have never been available onchain. Now, they are made accessible onchain, transferable at any time, and usable across DeFi,” he stated.

Ondo also identifies lending collateral and other onchain products as potential uses for the portfolio tokens. Such uses depend on support from individual services and do not change the restrictions on who can access the products. Ondo plans to expand the lineup with additional portfolios, building on the three BlackRock-developed strategies included in its initial launch.

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