BlackRock offers a glimpse of how tokenization may change your investment portfolio
BlackRock and Ondo Finance have partnered to offer tokenized investment portfolios, allowing investors to hold diversified strategies as single onchain tokens. This shift represents an evolution from tokenizing individual assets to packaging entire investment strategies for greater liquidity and utility.
Why it matters
Tokenized portfolios could streamline wealth management by reducing rebalancing complexity and enabling assets to be used as collateral in decentralized finance.
For most investors, building a portfolio still means either buying a collection of stocks, bonds and funds themselves or handing the job to an asset manager.
Tokenization may eventually blur that distinction.
BlackRock, the world's largest asset manager, offered a glimpse of what that could look like with Ondo Finance via Intelligent Portfolios , packaging professionally constructed investment strategies into individual tokens on the blockchain.
The three portfolios, developed by BlackRock for Ondo, combine different assets into strategies focused on high income, diversified growth and high growth. Instead of buying and rebalancing the underlying investments separately, an investor can hold a single token representing the portfolio.
That may sound like a small change. After all, mutual funds and ETFs have bundled investments into single products for decades.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in