BlackRock Portfolio Tokens Hit Blockchain
BlackRock, the world's largest asset manager, has taken its investment portfolios to the next level by partnering with Ondo Finance. The three investment portfolios developed by BlackRock are now being packaged as blockchain-based tokens by Ondo, allowing eligible investors to hold a single token that provides exposure to an entire professionally constructed portfolio.
The new structure effectively brings portfolio construction itself onto blockchain rails. This is different from traditional exchange-traded products or Treasury securities on-chain. The three products available are Ondo High Income Powered by BlackRock (BLKHIon), Ondo Diversified Growth Powered by BlackRock (BLKDIGon) and Ondo High Growth Powered by BlackRock (BLKGRWon). They can be accessed by eligible investors outside the United States in permitted jurisdictions.
Ondo Finance is handling the tokenization and implementation of the portfolios, while Ondo Global Markets issues the portfolio tokens. The underlying positions consist of Ondo Stocks, which are backed 1:1, with dividends automatically reinvested. This simplifies the process for investors, as they no longer need to individually buy multiple securities or rebalance them periodically.
The model allocation is roughly 32% aggregate bonds, 30% high yield, 24% credit and 14% other fixed-income exposure. The two largest allocations at the individual-product level are 18% each to the iShares High Yield Systematic Bond ETF and iShares Investment Grade Systematic Bond ETF.