Ondo Finance wants to do for on-chain portfolios what SPY did for index investing: put a whole strategy into one ticker anyone can buy, fully on-chain.
John Hoffman, managing director and head of product portfolios at Ondo Finance, spent most of his career in the ETF market. He told TheStreet Roundtable that these new products are “kind of the SPY moment for on-chain finance.”
On Sept. 24, Ondo launched Ondo Intelligent Portfolios, curated portfolios delivered as single transferable tokens. The first three are based on strategies BlackRock developed for them: Ondo High Income, Ondo Diversified Growth and Ondo High Growth. They are open only to eligible investors outside the US.
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The product builds on Ondo’s tokenized stock business, which crossed $1 billion in total value locked (TVL) in less than eight months after launch.
From speculation to infrastructure
“Crypto has long been a place of speculation, and this is somewhat of a play on the progression of crypto as well, from kind of a $3 trillion industry to what will become a $100 trillion technology that will power global markets,” Hoffman said.
Ondo describes its work so far as access. Yield-bearing dollars, tokenized stocks and ETFs, and perpetual futures (perps) have all brought new assets to investors globally, and they argue that complete portfolios are the next layer.
Allocation and rebalancing are encoded into smart contracts and run on a fixed schedule.
Built to be used, not just held
Hoffman described the portfolios targeting 8% and 5% distributions, an AI leaders portfolio, and a Mag 7 portfolio with roughly 15% Bitcoin and 5% Ethereum.
He also said that early users are generally people who already hold capital on-chain, but pushed back on the idea that this is just a buy-and-hold product.
“The use cases and applications are gonna really start to multiply when you have this single token on-chain that gives you diversified exposure to a basket of stocks and ETFs and fixed income,” he said.
He pointed out how ETFs became something no one expected during his time in that industry.
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“The use cases when you turned that technology on went so far beyond our initial expectation,” Hoffman said.
Ondo says a portfolio token can collateralize a decentralized finance (DeFi) lending or perps position. Its perps venue already accepts tokenized SPY and QQQ as collateral.
“The applications are gonna far exceed even what we can kind of predict today,” Hoffman said.