BlackRock has developed three tokenized portfolio strategies for Ondo, each trading as a single token that carries an entire allocation, rebalances itself, and moves peer-to-peer between wallets — a structure with no equivalent in a traditional brokerage account. The launch marks a step beyond the single-instrument tokenization of treasuries, money market funds and stocks that has defined the sector so far, and sent ONDO up roughly 30%.

The news anchors the latest edition of Morning Minute, Decrypt's daily newsletter written by Tyler Warner; per Decrypt, the analysis and opinions expressed are Warner's own and do not necessarily reflect those of the outlet. The edition also rounds up a broad crypto rebound, a New York lawsuit against Polymarket, a $350 million-plus exploit on Bitget, a security incident at Magic Eden, and a new physical collectibles hub from OpenSea.

Tokenization's next phase has BlackRock's name on it

The tokenization pitch has always been the same: take a thing that exists, put it on a blockchain, and make it faster. Treasuries, money market funds and stocks have all been put onchain. Wednesday produced something different.

BlackRock developed three portfolio strategies for Ondo, and each one now trades as a single token that carries an entire allocation, rebalances itself, and moves peer-to-peer between wallets. Nothing like it exists in a brokerage account.

This is not BlackRock's first push into tokenization. Its BUIDL product put a money market fund onchain in March 2024, and in July, Ondo tokenized BlackRock's iShares Core S&P 500 ETF alongside Micron shares. Every one of those wraps a single instrument. The new tokens, by contrast, wrap a mix of assets meant to be rebalanced over time, with holdings, weights and every rebalance visible onchain. That is the step from digitizing existing products to building ones that only work onchain.

The three tickers are BLKHIon for high income, BLKDIGon for diversified growth and BLKGRWon for high growth, available to eligible investors outside the US. ONDO rose about 30% on the news.

The structure offers a fresh example of how institutions can come onchain. BlackRock supplied the strategies, and its name is on the tickers. Ondo's disclosures state that BlackRock is not the adviser, manager, sponsor, promoter, underwriter, marketer or distributor, exercises no supervision or control, and has a potential conflict. The world's largest asset manager has, in effect, licensed its intellectual property into a crypto product while taking on none of the operational or regulatory responsibility.

The institution provides the brand and the expertise; the crypto firm provides the rails, the distribution and the liability. Everyone gets what they want, and the entity whose name sells the product carries the least exposure if it breaks. The newsletter argues that every asset manager that follows will use the same shape — and that, with the recent green light from the SEC and CFTC, a great deal more is likely to follow.

Macro crypto and markets

Crypto majors were green and up 2-6% despite rising yields. Bitcoin gained 1% to $84,500, Ethereum rose 3% to $2,720, Solana climbed 7% to $121, HYPE added 3% to $93.50 and ZEC jumped 8% to $1,605.

Top altcoin movers included QNT (+25%), Ondo (+21%), FET (+20%) and ENA (+16%).

Oil slipped 1% to $92, while gold gained 1% to $4,345. Stock futures were green despite rising yields, with the Dow up 0.3% and the Nasdaq up 0.7%.

Policy and legal

New York sued Polymarket over alleged illegal gambling and underage trading, seeking to bar the platform from operating in the state.

SEC Commissioner Hester Peirce called for zero-knowledge proofs to replace what she termed the "KYC panopticon," allowing users to prove eligibility without surrendering underlying personal data.

The Solana Foundation has hired Binance's former global chief marketing officer to lead an institutional push.

Bitget confirmed that roughly $351.6 million was drained from its hot and warm wallets on Thursday, after onchain sleuths first flagged about $183 million. The confirmed total is nearly double the initial onchain estimate. Withdrawals were paused, and CEO Gracy Chen said a $464 million user fund covers the loss.

The Federal Reserve has proposed two stablecoin rules requiring full backing in short-term Treasuries, with operational-risk capital charges stepping from 2% on the first $20 billion outstanding down to 1% above $50 billion.

Corporate treasuries and ETFs

The Bitcoin ETFs saw $191 million in net inflows on Thursday, while the Ethereum ETFs took in $66 million.

Meme coin tracker

Meme leaders were green, up 5-7%: DOGE +7%, SHIB +6%, PEPE +6%, PENGU +3%, TRUMP +7%, SPX +5% and BONK +6%.

Robinhood chain leaders rebounded 6-20%: Pons +7% to $450 million; AI +7% at $242 million; Cashcat +20% at $176 million; Shroom +74%, Agrippa +120% and Juggernaut +30% led top movers.

Solana's top movers were led by BP +60%, Textit +30%, Collect +28x, NPCs +10x, Neet +40% and Jeanphil +90%, while Ansem rose 15% to $171 million.

Token, airdrop and protocol tracker

Hyperliquid led onchain protocols in revenue with $2.8 million, followed by Pump at $1.88 million, Stonk at $929,000 and Pons at $258,000, per DefiLlama.

Pump.fun founder Alon posted that Pump does indeed care about memecoin shelf life and holders being rewarded, teasing more to come on this in Q4.

Stonk posted its seventh straight $1 million-plus revenue day, with cumulative token buybacks now above 18%, according to its revenue tracker.

NFTs

NFT leaders were slightly red: Punks -1% at 33.69 ETH, BAYC even at 6.89 ETH and Pudgy -3% at 3.41 ETH. Identity MD (+10%) and Quotrons (+50%) led top movers.

OpenSea launched a physical collectibles hub aggregating graded trading cards from partner platforms across Pokémon, sports and One Piece. Partners handle grading, vaulting and for the cards, while OpenSea manages trading from a single wallet.

Magic Eden is suspected to have a security vulnerability allowing the theft of NFTs from wallets that approved a certain contract, according to Wu Blockchain. White hat hackers moved thousands of NFTs before they could be taken.