Ondo Launches Three Tokenized Portfolios Based on BlackRock Models
Ondo Finance launched three on-chain portfolio tokens using models developed by BlackRock, but holders own Ondo-issued securities and may face limited exit options without direct redemption access.
Ondo Finance launched three on-chain portfolio tokens on Sept. 24, offering basket exposure through investment models BlackRock developed for the company. The products are issued and managed by Ondo rather than BlackRock.
The products are Ondo High Income (BLKHIon), Ondo Diversified Growth (BLKDIGon) and Ondo High Growth (BLKGRWon). Ondo implements the model allocations with tokenized assets and rebalances the portfolios on a preset schedule.
Each token provides economic exposure to a weighted basket that includes Ondo Stocks tracking equities and exchange-traded funds. Holders do not receive ownership rights in BlackRock funds or the underlying securities.
Ondo’s legal disclosure identifies each token as a separate security issued by Ondo Global Markets (BVI) Limited. BlackRock Fund Advisors provides model allocations, while Ondo makes the investment decisions and manages, sponsors and administers the products.
BlackRock does not manage the on-chain portfolios or owe advisory or fiduciary duties to token holders. It is also generally not required to update a model after delivering it, and Ondo decides whether to implement any subsequent changes. As a result, a portfolio’s allocation may diverge from the corresponding BlackRock model.
Direct minting and redemption are restricted to eligible people outside the US who complete identity and anti-money-laundering checks. Ondo also screens applicants for US-person status, restricted jurisdictions and prohibited-person status.
The tokens can still be transferred on-chain between wallets without completed onboarding, subject to jurisdictional and other restrictions. However, possession does not make a holder eligible to redeem directly with Ondo.
Ondo says peer-to-peer transfers can take place around the clock through supported third-party platforms. Holders who cannot redeem with Ondo must rely on a third-party buyer, with any sale dependent on venue rules, market conditions and available liquidity.
