Ondo Issues Portfolio Tokens Using BlackRock-Developed Strategies
The three tokens use nondiscretionary model strategies developed by BlackRock for Ondo, but BlackRock does not issue, manage or operate them.
Ondo Finance has launched three onchain portfolio tokens using strategies developed by BlackRock for Ondo, but the products are issued and operated by Ondo rather than representing ownership of BlackRock funds.
The products are part of Ondo Intelligent Portfolios: BLKHIon, or Ondo High Income Powered by BlackRock; BLKDIGon, or Ondo Diversified Growth Powered by BlackRock; and BLKGRWon, or Ondo High Growth Powered by BlackRock. The tokens combine exposure to multiple Ondo Stocks, which represent tokenized equities and exchange-traded funds, into single transferable tokens.
Ondo Global Markets (BVI) Limited issues the securities. BlackRock Fund Advisors provides one or more nondiscretionary model portfolio strategies based on specifications supplied by Ondo. BlackRock does not manage or exercise discretion over the portfolios and does not handle their tokenization, issuance, distribution, custody or operation.
Investors hold separate securities issued by Ondo. The tokens do not represent interests in the underlying funds, and holders do not receive ownership, voting or information rights in those underlying securities.
The portfolio strategies may include funds sponsored and managed by BlackRock and its affiliates. Those funds pay fees to BlackRock-affiliated entities, creating a potential conflict of interest.
Neither U.S. persons nor investors located in the United States may access the products. Qualified investors in the European Economic Area and United Kingdom may access them subject to applicable restrictions.
BLKHIon had nine constituents, $1,077,319.18 in net assets and a 0.35% service fee as of Sept. 25. BLKDIGon had eight constituents, $356,585.13 in net assets and a 0.49% service fee. BLKGRWon had six constituents, $386,881.42 in net assets and a 0.49% service fee. All three list Sept. 16 as their inception date.
The portfolios generally rebalance quarterly, although the schedule can vary by model provider. Minting and redemption generally operate from 9:30 a.m. to 3:45 p.m. ET (13:30 to 19:45 UTC) during regular U.S. market hours. Secondary-market trading can occur 24 hours a day, seven days a week on supported platforms.
The structure extends Ondo’s tokenization model from individual assets to packaged allocations. Ondo determines how the strategies are implemented, operates the products and executes rebalancing, while BlackRock’s disclosed role is limited to providing nondiscretionary model portfolio strategies.
