Ondo Finance launches tokenized portfolios based on BlackRock strategies

Sources · 9 sources

1. CB

   Crypto BriefingArticle · Sep 24

   ONDO Finance launches BlackRock-backed portfolios as ONDO rallies over 18% Ondo's innovative tokenized portfolios signal a shift in DeFi, potentially attracting traditional finance interest and reshaping investment landscapes. The post ONDO Finance launches BlackRock-backed portfolios as ONDO rallies over 18% appeared first on Crypto Briefing .

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2. CR

   CryptoSlateArticle · Sep 25

   Ondo unlocks BlackRock portfolio strategies, but only non-US traders benefit Ondo Finance launched three on-chain portfolio tokens on Sept. 24 using investment strategies BlackRock developed for the company. The tokens give buyers economic exposure to diversified baskets, but they are securities issued by Ondo, not interests in BlackRock funds. Only eligible non-US investors who complete onboarding can redeem the tokens directly with Ondo, according to its launch release and product terms . The first three products are Ondo High Income (BLKHIon), Ondo Diversified Growth (BLKDIGon) and Ondo High Growth (BLKGRWon). They draw on portfolio strategies BlackRock developed for Ondo, and Ondo implements the allocations using tokenized assets and rebalances the portfolios on a preset schedule, the company said in its launch explanation . Holding a portfolio token gives economic exposure to a weighted basket that includes Ondo Stocks, which track equities and exchange-traded funds. It does not give the holder a right to the underlying funds or securities. Ondo's legal disclosure calls each token a separate security issued by Ondo Global Markets (BVI) Limited. Ondo-issued tokens may be held or transferred more broadly, while minting and redemption require eligible non-US investors to complete onboarding. BlackRock Fund Advisors supplies model allocations to Ondo but does not make investment decisions for the on-chain portfolios. Ondo decides how to implement the models and manages, sponsors, and administers the products. BlackRock does not manage the portfolios or owe advisory or fiduciary duties to token investors, and the company is generally not required to update its model after delivery. Ondo decides whether to apply any changes, so an on-chain portfolio may differ from the corresponding model. Related Reading Crypto promised to eliminate stockbrokers, but 94% of its tokenized market now relies on an Alpaca Strategy for BlackRock onboarding Ondo's FAQ says direct minting and redemption require an eligible person outside the US to complete identity and anti-money-laundering checks. The process also screens for US-person status, restricted jurisdictions, and prohibited persons. Ondo processes redemptions only for eligible holders who have completed onboarding. A person may still receive or hold a portfolio token without completing that process because the tokens are transferable on-chain, subject to jurisdictional and other restrictions. Possession alone does not qualify the holder to redeem with Ondo. The ability to move a token between wallets is therefore distinct from eligibility to redeem it with the issuer. Ondo describes peer-to-peer transfers as available around the clock, including through supported third-party platforms. That capability does not show that a buyer will be available at a given price or that a holder can exit immediately. Anyone unable to redeem directly would depend on a third party willing to take the token, subject to that venue's rules and market conditions. The post Ondo unlocks BlackRock portfolio strategies, but only non-US traders benefit appeared first on CryptoSlate .

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3. FC

   Frank Chaparro@fintechfrankPost on X · Sep 24

   Wow big BlackRock is taking model portfolios onchain. The $13T asset manager has built three portfolios — high-income, diversified growth and high-growth — that Ondo Finance will tokenize, giving non-U.S. investors 24/7 access via crypto wallets. The portfolios hold mixes of stock, bond and bitcoin ETFs, with Ondo tokens tracking each strategy. It’s the first time BlackRock has designed portfolios specifically to be tokenized by another firm.

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4. CO

   Cointelegraph@CointelegraphPost on X · Sep 24

   🚨 LATEST: The US 10-year Treasury yield hit 5.18%, its highest since July 2007. Bitcoin briefly dipped below $83,000 before recovering toward $84,500. $ONDO climbed back above $0.50 as Ondo launched tokenized portfolios on Ethereum and BNB Chain. https://t.co/5CgxxU36KA

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5. WB

   Wu Blockchain@WuBlockchainPost on X · Sep 24

   BlackRock and Ondo Launch Tokenized ETF Portfolio Strategies for Non-U.S. Investors According to WSJ, BlackRock and Ondo Finance have launched Ondo Intelligent Portfolios, bringing BlackRock’s customized ETF portfolio strategies onchain as transferable tokens for the first time. Available to eligible investors outside the U.S., the initial lineup includes three strategies: High Income (BLKHIon), Diversified Growth (BLKDIGon) and High Growth (BLKGRWon). Investors can access ETF portfolio exposure through a single transferable token using major wallets and DeFi applications.

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6. CR

   CryptoSlate@CryptoSlatePost on X · Sep 25

   BlackRock developed models for Ondo’s three new portfolio tokens. Holders get no claim on BlackRock funds or underlying securities. Only eligible, onboarded non-US investors can redeem with Ondo. Those who cannot redeem need a secondary-market buyer. https://t.co/zt3q0T3Hqn

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7. EV

   Evan@StockMKTNewzPost on X · Sep 24

   BLACKROCK AND ONDO FINANCE JUST ANNOUNCED A NEW PARTNERSHIP Blackrock $BLK just announced it has built 3 investment portfolios that will trade as digital tokens The portfolios will be tokenized by Ondo Finance The new portfolios will be the first BlackRock has designed to be tokenized by another firm Ondo is launching seven tokenized model portfolios today, including the three from BlackRock: high-income, diversified growth and high-growth. The BlackRock portfolios will hold a mix of stock, bond and bitcoin ETFs depending on their profile. Ondo will issue a token tracking each of the portfolios. As investors buy them, self-executing software automatically buys shares in the underlying ETFs that make up the portfolio. The model portfolios will initially be available to non-U. S. investors, who won’t have direct shareholders rights in the underlying securities held. Investors will be able to borrow against their tokens, transfer them and trade them 24/7. (Source Bloomberg)

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8. TB

   The BlockArticle · Sep 24

   Ondo launches onchain portfolio tokens based on BlackRock-developed strategies Ondo has launched three onchain portfolio tokens based on model portfolio strategies developed by BlackRock.

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9. BS

   BSCN@BSCNewsPost on X · Sep 24

   What are Ondo Finance's Intelligent Portfolios? @Ondo Finance has just launched its own product category of the onchain asset class: Professionally curated, multi-asset investment portfolios packaged in a single transferable token. Instead of manually buying, allocating, and rebalancing your own portfolio of tokenized stocks and ETFs, non-US qualified investors can mint a single token for total return exposure to the underlying strategy. So, what are they? (1) They are neither funds nor ETFs. • You are not a shareholder of an investment pool. • You mint and redeem your tokens with the issuer (Ondo Global Markets). Every token is underpinned entirely by a weighted portfolio of Ondo stock and ETF tokens (including cash in transit). (2) @BlackRock provides the model strategies. Ondo implements and runs them onchain. The initial three strategies have different objectives: • BLKHIon (Ondo High Income Powered by BlackRock): Global fixed income strategy utilizing iShares ETFs for global aggregate bonds, high yield, credit, and income sleeves. • BLKDIGon (Ondo Diversified Growth Powered by BlackRock): Balanced strategy targeting approximately 70% equity and 30% fixed income, alternatives, and having a Bitcoin allocation. • BLKGRWon (Ondo High Growth Powered by BlackRock): Higher growth allocation strategy. The tokens are live now on Ethereum and BNB Chain, with Solana coming soon. (3) The underlying infrastructure provides capabilities that conventional portfolios cannot provide. The tokens are 24/7 p2p transferable and composability-ready for DeFi – usable as collateral in lending platforms, used in perps, or even nested into other Intelligent Portfolios. (4) Access is via the same rails that investors use today. Investors in permitted jurisdictions who meet eligibility criteria may mint or redeem on the Ondo app within US market hours (usually 9:30 a.m. to 3:45 p.m. ET) in an atomic manner. In addition, tokens may be traded on secondary markets, wallets, exchanges, and DeFi platforms 24/7. KYC requirements are the same as for Ondo Stocks; current Ondo Stocks investors do not require additional onboarding. In short, Ondo Intelligent Portfolios represent an institutional approach to creating model portfolios that used to require a brokerage account and traditional fund packaging, wrapped into a single on-chain token that lives in the same wallet as users’ other crypto. The first three BlackRock-driven products are live, laying the groundwork for other institutions to do the same.

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