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Market News

Ondo Launches Three Tokenized Portfolios Built on BlackRock Strategies

BlackRock supplies the allocation strategy but is not the manager, sponsor or distributor of the tokens, and discloses a potential conflict in constructing them.

Written By Dhara Chavda
Published 1 hour ago
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BlackRock and Ondo Finance logos connected by an X symbol representing a strategic partnership
AI Summary
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Ondo launches three tokenized portfolios based on strategies BlackRock developed for it
Tokens BLKHIon, BLKDIGon and BLKGRWon are limited to eligible non-US investors
BlackRock is not the adviser, manager or sponsor of the tokens and discloses a potential conflict

Ondo Finance has put three investment portfolios inside single transferable tokens, built on strategies supplied by BlackRock. Ondo says it is the first time on-chain investors can access exposure to such strategies through a single token.

BlackRock’s name is on the products but not the responsibility. Ondo’s disclosures state that BlackRock is not the investment adviser, manager, sponsor, promoter, underwriter, marketer, or distributor of the portfolios or the tokens and exercises no supervision or control over them. It supplies the allocation strategy; Ondo builds, issues, and runs everything else.

Ondo announced the launch of Ondo Intelligent Portfolios on September 24, 2026, describing what it calls a new on-chain product category: curated investment portfolios delivered as single on-chain transferable tokens. The first three are based on portfolio strategies BlackRock developed for Ondo and are available to eligible non-US investors in permitted jurisdictions.

The Three Portfolios

Each is a separate token with its own ticker:

  • BLKHIon—Ondo High Income Powered by BlackRock
  • BLKDIGon—Ondo Diversified Growth Powered by BlackRock
  • BLKGRWon—Ondo High Growth Powered by BlackRock

Ondo said diversified, professionally constructed strategies have historically required brokerage accounts and traditional fund structures. Delivered as peer-to-peer transferable tokens, it said, the portfolios become accessible through the wallets, exchanges, and DeFi applications investors already use.

The company listed four capabilities it says the format unlocks: programmatic rebalancing, full composability with DeFi, complete on-chain transparency, and multiple asset classes in a single token.

“Tokenization creates new ways for portfolio strategies to be delivered through digital infrastructure,” said Lisa O’Connor, global head of the Model Portfolio Solutions team and co-chief investment officer for Global Solutions within BlackRock’s Multi-Asset Strategies group. She said diversified strategies can be incorporated into tokenized investment products, “enabling eligible investors to access diversified allocations through a single instrument,” and that it showed how established portfolio construction approaches can be delivered through new channels.

Who Can Buy Them

The tokens are not available in the United States. Ondo’s disclosures state that the tokens have not been registered under the Securities Act of 1933 and may not be offered or sold in the US or to US persons absent registration or an exemption, and that the on-chain portfolios are not registered as investment companies under the Investment Company Act of 1940.

Sales are made in reliance on exemptions for offerings outside the US, and the issuer of the tokens is Ondo Global Markets (BVI) Limited. Ondo’s European disclosures note that prospectuses for its on-chain products have been approved in Liechtenstein for passporting into EEA member states and that on-chain stocks are available to professional and retail investors there.

What a Holder Actually Owns

The structure matters more here than in a single-fund tokenization, and Ondo’s documents are explicit about it.

The tokens constitute separate and distinct securities issued by Ondo. Investors have no right, title, interest, or claim in or to any securities underlying an on-chain portfolio, nor any recourse to a manager of those underlying funds. An investment in the tokens is not an investment in the underlying funds themselves.

The portfolio strategies include funds sponsored and managed by BlackRock and its affiliates, which are paid fees for managing them. Ondo discloses the consequence directly: BlackRock has a potential conflict of interest in constructing the portfolio strategies, because an investment in such funds by the on-chain portfolio increases compensation to BlackRock and its affiliates.

There is also a gap between strategy and product. BlackRock provides the strategies to Ondo, but under the arrangement it has no obligation to provide updates or corresponding portfolio strategies in a timely manner or at all, and an on-chain portfolio may not incorporate changes to a strategy in all circumstances. So the token may not always reflect BlackRock’s current version of the allocation.

BlackRock is not responsible for the tokenization, issuance, distribution, custody, or operation of the tokens and does not make any offer to sell or solicitation of any offer to buy them, according to the disclosures.

Why This Is Different From Tokenizing a Fund

Tokenized funds are no longer novel. BlackRock’s BUIDL, launched with Securitize in March 2024, put a money market fund on-chain. In May the firm filed for an on-chain share class of its Select Treasury Based Liquidity Fund. In July, Ondo tokenized BlackRock’s iShares Core S&P 500 ETF alongside Micron shares under the third-party custodial model that SEC staff described in a January 28, 2026, statement.

Each of those wraps a single instrument. An intelligent portfolio wraps an allocation: a mix of assets that is meant to be rebalanced over time, expressed as one token. Ondo’s claim of programmatic rebalancing is the part that has no equivalent in a conventional tokenized fund, and the mechanics of how it is executed, and how often, are not described in the announcement.

The partnership between the two firms already runs in both directions. Ondo’s OUSG holds BlackRock’s BUIDL token, making it one of the fund’s larger holders, and BlackRock has been among Ondo’s institutional backers.

Ondo framed the launch as the beginning of a category rather than a single product. “The infrastructure is now in place for leading financial institutions to bring their asset allocation expertise onchain,” the company said.

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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