Ondo Finance launched three on-chain portfolio tokens on September 24 using investment strategies developed by BlackRock. The tokens provide economic exposure to diversified asset baskets but are securities issued and managed by Ondo, not interests in BlackRock funds themselves.
The three products are Ondo High Income (BLKHIon), Ondo Diversified Growth (BLKDIGon), and Ondo High Growth (BLKGRWon). Each token tracks a weighted basket that includes Ondo Stocks, which follow equities and exchange-traded funds. Token holders gain economic exposure to these allocations but do not hold rights to underlying funds or securities.
Redemption Limited to Eligible Non-US Investors
Only eligible non-US investors who complete identity verification and anti-money-laundering checks can redeem tokens directly with Ondo. The onboarding process also screens for US-person status, restricted jurisdictions, and prohibited persons.
While tokens remain transferable on-chain and can be held or traded by anyone subject to jurisdictional restrictions, the ability to transfer a token differs from eligibility to redeem it. Holders unable to redeem directly must rely on secondary-market buyers willing to purchase the tokens on third-party platforms.
Implementation and Management Structure
BlackRock Fund Advisors supplies model allocations to Ondo but makes no investment decisions for the on-chain portfolios. Ondo implements the strategies, manages the products, and determines portfolio rebalancing on a preset schedule.
BlackRock does not manage the portfolios or owe advisory or fiduciary duties to token investors. The company is not required to update its model allocations after delivery, and Ondo decides whether to apply any changes, meaning an on-chain portfolio may diverge from its corresponding model.
