ONDO opened the investment port strategy of BlackRock , but only non-US traders benefited.

- What's going on?

On September 24, Ondo Finance launched three blockchain tokenized port investments, namely Ondo High Income (BLKHIon), Ondo Diversified Growth (BLkDIGon) and Ondo High Growth, each of which refers to an investment port strategy developed by BlackRock specifically for Ondo.

Interestingly, Ondo chose to only launch the product line for non-U.S. investors, reflecting a general picture of the tokenized assets market in which the U.S is still heavily constrained by securities regulations while Asian investors including Thailand and the ASEAN region may have been able to access such products earlier.

What do these tokens give their holders?

Holding tokenized port investments provides economic exposure from a weighted asset basket that includes Ondo Stocks, which tracks the price of various stocks and ETFs.

But the point is to understand these tokens. It isn't. Ondo's legal disclosure document states that each token is a security issued by Ondo Global Markets (BVI) Limited, which is a separate entity.

How is BlackRock involved?

BlackRock's role is limited to the submission of model allocations through its Fund Advisors.

• BlackRock didn't decide to invest in the Port of Shenzhen.
• No advisory or fiduciary duty to the token holder.
• Generally, there is no need to update the model after submission and Ondo decides whether or not to implement changes.

As a result, the actual on-chain ports may differ from BlackRock's original model.

Who can buy and sell directly to Ondo?

Under the terms of the product, minting and redeeming directly with Ondo is open only to eligible individuals who reside outside the United States and must go through an onboarding process including identity verification and anti-money laundering measures as well as filtering for U.S. citizenship, restricted country territories, and prohibited persons.

However, since tokens can be on-chained there is a possibility to receive or hold the token without ever going through onboarding but just holding it does not give you the right to resell it back to Ondo.

A word of caution about the boxes.

Ondo notes that peer-to-peer transfers can be made on a 24-hour basis, including through third party supported platforms, but the ability to transfer tokens between wallets does not guarantee that there will be buyers at the desired price or that they will leave immediately. Holders who redeem directly do not have to rely on consenting traders accepting the token under the rules of each platform and market conditions at the time.

The mark.

This content is for educational purposes, not investment advice.