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What does BlackRock’s model with Ondo change?

Portfolio tokenization is evolving toward a structure where investors can hold a ready-made strategy on the blockchain as a single asset instead of choosing individual stocks, bonds or funds one by one. BlackRock showed that tokenization may shift from individual securities to the strategy itself by offering three model portfolios it developed for Ondo Finance in token form.

The products consist of three separate strategies built from different assets. In this structure, investors can hold a single token representing the entire portfolio instead of buying the underlying assets separately and rebalancing them regularly.

  • high-income strategy
  • diversified growth strategy
  • high-growth strategy

Traditional mutual funds and ETFs have long offered packaged products. But keeping the portfolio directly on-chain creates new use cases, including the ability to move the asset between wallets and platforms, see it on-chain and potentially use it as collateral.

Why does this step matter for the market?

The numbers and the distribution effect

So far, the tokenization wave has focused mostly on on-chain versions of Treasury funds, private credit, stocks and ETFs. The BlackRock-Ondo example points to the next stage, in which these assets can be combined into a strategy and then distributed on the blockchain.

According to Broadridge data, model portfolios widely used by wealth managers totaled $9.8 trillion in June. That scale shows tokenization could become not just a technology test for asset managers, but also a new distribution channel.

How is competition and the future scenario taking shape?

Similar initiatives and automation expectations

In August, Bitwise introduced automated token portfolios for eligible investors outside the U.S. with Glider, backed by Coinbase and a16z. In that model, tokenized shares remain in the investor’s own wallet while software adjusts allocations to maintain target weights; Ondo, by contrast, bundles the exposure into a single transferable token.

According to Tom Staudt, chairman and chief operating officer at ARK Invest, tokenization could expand access to private equity, private credit, crypto and international markets through the same digital infrastructure. Combined with artificial intelligence, this approach could make it possible to build more personalized portfolios around an investor’s goals, risk appetite and even tax situation.

What infrastructure conditions are needed?

John Hoffman, a former executive responsible for Ondo’s portfolio products, previously said that a more automated model would require a broader on-chain asset universe, prime brokerage infrastructure and asset-management strategies that can run natively on the blockchain. Dan Romero from Stripe-backed Tempo argues that stablecoins bring cash onto the blockchain, while tokenization can bring the investable asset universe on-chain and open the door to new financial products.

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