Ondo Launches BlackRock-Managed Smart Wallets on Blockchain

Ondo Finance launched a new product category on the blockchain: smart wallets. These are transferable portfolios built on investment strategies developed and managed by BlackRock for Ondo. The three portfolio tokens launched provide eligible investors outside the U.S. with access to BlackRock's strategies via a single token.

Traditionally, constructing diversified portfolios required brokerage accounts and traditional fund structures. Ondo has now made these accessible to eligible non-U.S. investors through transferable, peer-to-peer issued tokens. These blockchain-based portfolios can be accessed via existing e-wallets, exchanges, and decentralized finance platforms.

The blockchain wallets enable new features such as automated rebalancing via smart contracts and programmable portfolios. Ondo aims to integrate strategies from major asset managers onto the blockchain. Lisa O'Connor from BlackRock highlighted that tokenized investment products can offer diversification through a single instrument.

The three initial portfolio types are Ondo High Income (BLKHIon), Ondo Diversified Growth (BLKDIGon), and Ondo High Growth (BLKGRWon). Each portfolio token represents an economic exposure to an underlying basket of assets. Ondo Finance plans to expand its offering of blockchain-based portfolios, bridging traditional and decentralized finance.