BlackRock Enters Tokenization Market with Ondo Finance

BlackRock and Ondo Finance have collaborated to launch tokenized income and growth portfolios. These tokenized portfolios are designed to provide investors with a new way of accessing investment strategies.

The three model portfolios, built by BlackRock, target high income, diversified growth, and high growth. Each portfolio is represented by one token that investors can hold in a wallet, extending the concept of tokenization from individual assets to entire investment strategies.

According to Broadridge figures cited in the report, these model portfolios contained roughly $9.8 trillion in assets as of June. The tokens are available to eligible non-U.S. investors and can trade peer-to-peer across wallets, exchanges, and decentralized venues, including 1inch.

The partnership between BlackRock and Ondo Finance marks a significant development in the adoption of tokenization in the financial industry. Lisa O'Connor, BlackRock's global head of model portfolio solutions, described the delivery model as creating new ways for portfolio strategies to be delivered through digital infrastructure.