BlackRock And Ondo Finance Partner On Tokenized Portfolios

Asset manager BlackRock has partnered with Ondo Finance to introduce Intelligent Portfolios, packaging professionally constructed investment strategies into individual tokens on the blockchain, according to CoinDesk. The initiative combines different assets into strategies focused on high income, diversified growth, and high growth, allowing investors to hold a single token representing the portfolio instead of buying and rebalancing underlying assets separately.

Onchain Portfolio Infrastructure

Putting portfolios onchain allows them to move between wallets and platforms, remain visible onchain, and potentially serve as collateral for borrowing or integration into other financial products. This development extends tokenization beyond individual assets like Treasury funds, private credit, stocks, and ETFs into complete investment strategies. Broadridge data cited in the report indicates that model portfolios held approximately $9.8 trillion in assets as of June.

Market Expansion and Future Outlook

Industry participants are exploring various methods to bring investment strategies onchain. Digital asset manager Bitwise introduced Automated Token Portfolios in August, allowing eligible non-U.S. investors to follow strategies of tokenized stocks while holding assets in their own wallets through Glider's technology. Executives from firms including ARK Invest and Stripe-backed blockchain Tempo noted that tokenization could eventually expand investor access to private equity, private credit, and other asset classes currently unavailable to the general public.

Key facts

• BlackRock and Ondo Finance developed three portfolios focused on high income, diversified growth, and high growth.
• Model portfolios held approximately $9.8 trillion in assets in June, according to Broadridge.
• Bitwise introduced Automated Token Portfolios in August alongside Coinbase and Glider.