Ondo Finance Launches BlackRock-Backed Portfolio Tokens for Non-US Investors

Ondo Finance has launched three new on-chain portfolio tokens, named Ondo High Income (BLKHIon), Ondo Diversified Growth (BLKDIGon), and Ondo High Growth (BLKGRWon), on September 24. These tokens utilize investment strategies developed by BlackRock but are issued as securities by Ondo, not as interests in BlackRock funds.

Only eligible non-US investors who complete the onboarding process can redeem these tokens directly with Ondo. The tokens provide economic exposure to diversified baskets of assets, including Ondo Stocks, which track equities and exchange-traded funds. However, holding a portfolio token does not grant rights to the underlying funds or securities.

Ondo's legal disclosure states that each token is a separate security issued by Ondo Global Markets (BVI) Limited. While the tokens can be held or transferred broadly, minting and redemption are restricted to eligible non-US investors who pass identity and anti-money-laundering checks. Ondo manages the portfolios based on BlackRock's model allocations but does not require BlackRock to make ongoing investment decisions.

In addition to the new portfolio tokens, Ondo Finance is also expanding its USDY tokenized yield product within the Solana DeFi ecosystem. USDY is a yield-bearing note backed by short-term US Treasuries and bank deposits, distinguishing it from conventional stablecoins. This expansion aims to enhance the utility of tokenized real-world assets in DeFi, allowing for productive use rather than passive holding.