Ondo launches three BlackRock strategy tokens for non-US buyers

According to CryptoSlate, Ondo Finance released three on-chain portfolio tokens on Sept. 24. These instruments apply investment strategies developed by BlackRock. The specific products are Ondo High Income (BLKHIon), Ondo Diversified Growth (BLKDIGon), and Ondo High Growth (BLKGRWon).

The tokens are securities issued by Ondo Global Markets (BVI) Limited. They are not interests in BlackRock funds. The company stated in its launch materials that it manages model allocations using tokenized assets. It also rebalances the portfolios according to a set schedule.

BlackRock provides the model allocations but does not manage the portfolios. The firm does not make investment decisions or owe advisory and fiduciary duties to token investors. After delivery, there is no general obligation for BlackRock to refresh the model. Ondo determines if any modifications get implemented.

Direct minting and redemption require an eligible person outside the United States. This person must complete identity and anti-money-laundering checks, according to Ondo's FAQ. The process examines whether individuals are US persons, residents of restricted areas, or banned entities. Holders who have not completed onboarding can still receive or transfer the tokens on-chain. However, they must rely on a third party willing to take the token to exit.