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BlackRock Brings Model Portfolio Onchain with Ondo Partnership

Sep 25
2 min read
BlackRock makes three model portfolios available onchain via Ondo

Investing is moving onchain as BlackRock brings three model portfolios onchain in partnership with Ondo Finance


BlackRock has developed three investment model portfolios that will be tokenized by Ondo Finance, moving tokenization beyond individual money-market funds, stocks and ETFs into portfolio construction itself.


Ondo is launching seven tokenized model portfolios, including three developed by BlackRock:


➡️ High Income

➡️ Diversified Growth

➡️ High Growth


Investors will be able to borrow against their tokens, transfer them and trade them 24/7. The portfolios hold baskets of ETFs spanning equities, fixed income and, depending on the portfolio, bitcoin exposure.


Initially available to non-U.S. investors, the tokenized portfolios can be transferred, traded around the clock and used as collateral for borrowing.


➡️ Beyond tokenized money market funds


BlackRock's expansion beyond tokenized money-market funds is moving towards portfolios, not simply another individual tokenized asset.


That makes a lot of sense.


Instead of an investor separately seeking U.S. equity exposure, fixed-income exposure and crypto exposure, a model portfolio packages those allocations into a single investable product.


Tokenization then potentially adds another layer:


Portfolio construction + global digital distribution + 24/7 transferability + collateral utility.


Rather than competing only to tokenize individual ETFs or securities, platforms can increasingly compete to become the distribution layer through which investors access entire portfolios.


And there is already enormous AUM sitting inside the model-portfolio structure.


Broadridge estimates assets in model portfolios reached $9.8 trillion in June, up from $7.7 trillion a year earlier.


➡️ For asset managers, that creates an interesting opportunity.


Tokenizing a single fund digitizes a product. Tokenizing the portfolio potentially digitizes the entire investment relationship.


➡️ For Ondo, it is already one of the biggest onchain tokenization platforms with $3.9B AUM.


With this, the strategic position is becoming broader again: not simply tokenizing assets, but building the infrastructure through which traditional asset managers can package and distribute investment products to onchain investors globally.



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