BlackRock Brings Three Investment Portfolios Onchain Through Ondo Finance

BlackRock investment portfolios featuring stock, bond and Bitcoin ETFs are tokenized

BlackRock is bringing three investment portfolio strategies onchain through a partnership with Ondo Finance, marking a new expansion of tokenized investment products tied to traditional financial assets.

Coin Bureau reported the development in a post on X, citing The Wall Street Journal. The three portfolios, developed by BlackRock for Ondo, will provide exposure to baskets of stock, bond and Bitcoin exchange-traded funds (ETFs). Ondo is responsible for issuing the portfolio tokens onchain.

The products are part of Ondo's new Intelligent Portfolios offering, which launched on Sept. 24. Ondo said the first three portfolios are based on strategies developed by BlackRock and are represented by individual tokens that track baskets of underlying assets.

Three BlackRock Strategies Become Portfolio Tokens

The initial lineup consists of three strategies: Ondo High Income Powered by BlackRock, Ondo Diversified Growth Powered by BlackRock and Ondo High Growth Powered by BlackRock.

Rather than requiring investors to manage each underlying position separately, the portfolio products package multiple assets into a single token. Ondo said the portfolios are designed with preset allocations and are rebalanced according to a defined schedule. The underlying positions are represented through Ondo's tokenized stocks and ETFs.

The Wall Street Journal reported that the portfolios will hold baskets of ETFs and will be tokenized by Ondo Finance. The arrangement gives BlackRock a role in developing the portfolio strategies while Ondo handles their implementation in tokenized form.

24/7 Transfers and Onchain Access

Coin Bureau said the tokenization will give non-U.S. investors access to 24/7 trading and transfers, as well as the ability to borrow against their holdings.

Ondo describes its portfolio tokens as peer-to-peer transferable assets that can be held in wallets and used across eligible onchain venues. The company's platform states that the products are not available in the United States and are offered only to eligible investors in permitted jurisdictions, subject to applicable restrictions.

Ondo has also previously integrated tokenized stocks and ETFs into decentralized lending markets. In February, the company said selected tokenized assets could be used as collateral for borrowing through integrations with Morpho and risk-management provider Gauntlet.

The combination of portfolio construction and tokenization therefore places traditional ETF exposure into an onchain format, while retaining the underlying investment strategy defined for each portfolio.

Ondo Expands Its Tokenized Asset Platform

Ondo's launch follows a broader expansion of its tokenized securities business. In May, the company said Ondo Stocks had surpassed $1 billion in total value locked, with more than 260 tokenized U.S. stocks and ETFs available across Solana, Ethereum and BNB Chain at the time.

Coin Bureau said Ondo now has about $3.9 billion in tokenized assets. The new BlackRock-linked portfolios add another category to that ecosystem by combining multiple tokenized securities into single portfolio products.

The three BlackRock strategies are now part of Ondo's Intelligent Portfolios lineup, with the company identifying them as the first portfolios in the offering based on strategies developed by BlackRock for Ondo.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.