Tokenisation news, 29 September 2026
BlackRock designs tokenised model portfolios for Ondo Finance, seven UK banks move tokenised sterling deposits between them, and the European Securities and Markets Authority (ESMA) names tokenisation an EU supervisory priority for 2027.
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Key takeaways
- BlackRock has designed three model portfolios (High Income, Diversified Growth and High Growth) that Ondo Finance will tokenise. They are initially available to non-US investors, can be traded 24/7 and can be used as collateral for borrowing.
- Barclays, HSBC, Lloyds Banking Group, Monzo, Nationwide, NatWest and Santander completed live customer payments using tokenised sterling deposits on a shared platform built by Quant, announced on 24 September 2026.
- ESMA announced on 23 September 2026 that it will launch a new Union Strategic Supervisory Priority on digital innovation from 2027, initially focused on how supervised firms use artificial intelligence and tokenisation.
- Assets in model portfolios reached $9.8 trillion in June, up from $7.7 trillion a year earlier, according to Broadridge.
Tokenised BlackRock portfolios will trade 24/7 and double as loan collateral
BlackRock has designed three model portfolios (High Income, Diversified Growth and High Growth) that Ondo Finance, one of the largest platforms for blockchain-based investments, will tokenise. A model portfolio is a ready-made allocation that packages several investments into a single product. Here, each one holds a basket of ETFs covering equities and bonds, with some including bitcoin exposure. For now, investors outside the US can trade the tokens at any hour, transfer them and borrow against them.
The Investre take: Tokenising whole portfolios rather than single funds opens a new distribution route: a well-built fund can now sit inside a product that investors trade around the clock across borders. For European managers, an on-chain share class becomes a way into portfolios and investors they could not reach before.
Seven UK banks move tokenised sterling deposits between each other in live customer payments
Barclays, HSBC, Lloyds Banking Group, Monzo, Nationwide, NatWest and Santander have made live customer payments using tokenised deposits: digital tokens representing money held in a bank account. Unlike stablecoins, they remain the bank's liability and keep normal deposit protections. The payments, including remortgages and a test retail purchase, ran on a common platform built by technology provider Quant, rather than inside a single bank's own system. The group plans to test using tokenised customer money to settle digital assets next.
The Investre take: Tokenised bank money moving between competing banks starts to answer one of the big open questions for on-chain funds: how the cash side of a trade settles. That puts subscriptions and redemptions on a single platform within reach for European fund managers ready to design for them.
Tokenisation and AI join ESMA's list of EU-wide supervisory priorities for 2027
The European Securities and Markets Authority (ESMA), the EU's markets regulator, will launch a new Union Strategic Supervisory Priority on digital innovation in 2027. This is a tool that directs supervisors across the EU towards high-risk areas. Working with national authorities, ESMA will first look at how regulated firms use artificial intelligence and tokenisation, and build supervisors' expertise in both. The new priority will run alongside one on cyber and operational resilience, which began in 2025.
The Investre take: Tokenisation becoming a supervisory priority shows regulators now treat it as part of mainstream finance, and clearer expectations let managers move ahead with confidence. Luxembourg's Controlling Agent role already gives tokenised funds a legally recognised register, so managers there can start building today on solid legal ground.
What this means for European fund managers
Luxembourg's fund managers already have the legal basis for this. Under the Blockchain IV Law, an authorised Controlling Agent can maintain a fund's share register directly on distributed ledger — no transfer agent, no CSD required.
Further reading: Investre becomes the first Controlling Agent under Blockchain IV Law, or The Final Block podcast.
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