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.
But putting the portfolio itself onchain potentially gives it characteristics that traditional structures don’t have. It can move between wallets and platforms, be visible onchain and potentially be used as collateral for borrowing or plugged into other financial products.
That starts to move tokenization beyond simply creating blockchain versions of individual stocks, bonds and funds.
Why this matters
Most of the tokenization boom so far has focused on individual assets: Treasury funds, private credit, stocks and ETFs.
