Key highlights:
- Ondo Finance launched Intelligent Portfolios, introducing diversified investment strategies onchain via single portfolio tokens
- The first three portfolios use investment strategies developed by BlackRock specifically for Ondo
- The launch expands Ondo’s relationship with BlackRock from tokenized individual assets and BUIDL to fully constructed onchain portfolios
Ondo Finance has launched Ondo Intelligent Portfolios, bringing professionally constructed investment portfolios to blockchain as single transferable tokens. The launch adds another major link between traditional asset management and onchain finance, with Ondo launching three portfolios powered by BlackRock.
BlackRock strategies move onchain via Ondo Intelligent Portfolios
The launch is particularly notable because the first three portfolios use strategies developed by BlackRock for Ondo, giving eligible investors outside the US access to BlackRock-designed portfolio allocations through a single token.
The portfolios include BLKHIon: Ondo High Income Powered by BlackRock, BLKDIGon: Ondo Diversified Growth Powered by BlackRock, and BLKGRWon: Ondo High Growth Powered by BlackRock.
According to the announcement, BlackRock developed the portfolio strategies specifically for Ondo. Lisa O’Connor, BlackRock’s Global Head of Model Portfolio Solutions and Co-CIO for Global Solutions, described tokenization as a new way to deliver diversified portfolio strategies through digital infrastructure.
Under the hood, it differs from simply putting a BlackRock ETF on a blockchain. Ondo is taking portfolio construction itself and putting the resulting allocation into a tokenized format.
Each Intelligent Portfolio token tracks a basket of tokenized stocks and ETFs. Ondo manages, sponsors, and administers the portfolios, while the underlying positions and target weights remain visible onchain.
The portfolios are also designed to rebalance programmatically. Smart contracts can return the portfolio toward its target allocation without holders having to manually buy and sell individual assets. Dividends and interest from the underlying securities are reinvested as part of the total-return structure.
“Portfolios like these have never been available onchain,” said Ondo Finance President Ian De Bode. “Now they are made accessible onchain, transferable at any time, and usable across DeFi.”
ONDO price surges amid expanding partnership with BlackRock
The ONDO price surged by 21.38% over the last day, buoyed by the partnership with BlackRock. At press time, ONDO traded at 0.5048, continuing its strong run since the end of August.
The launch of Intelligent Portfolios deepens an existing relationship between Ondo and BlackRock.
Ondo has already built products around BlackRock’s BUIDL tokenized fund, while its Ondo Stocks platform has also brought BlackRock’s iShares securities onto blockchain infrastructure. In July, Ondo announced the tokenization of BlackRock’s iShares Core S&P 500 ETF alongside Micron shares in the US through a custodial structure.
Meanwhile, Ondo is moving forward with its offchain execution network after its bet on an institution-focused layer 1 blockchain. Per the company, the new offchain powers Ondo Perps, its perpetual futures platform, while serving as a general-purpose execution layer for finance applications.