Ondo Unveils Private Markets With 24/7 Tokenized Access to Pre-IPO AI Company
Ondo Finance has launched Ondo Private Markets, a new platform designed to give eligible investors onchain economic exposure to private companies before they go public. The first offering will target a pre-IPO artificial intelligence company, with secondary-market trading expected to begin this week.
The launch expands Ondo’s tokenization strategy beyond public stocks and U.S. Treasuries. The company says eligible investors in permitted jurisdictions can trade the new instruments around the clock through blockchain-based secondary markets.
A New Route Into Private Markets
Ondo Private Markets uses tokenized notes rather than shares in the underlying companies. The notes link their potential payout to the per-share value of a referenced company’s common stock during a qualifying liquidity event, such as an IPO or acquisition.
That distinction is important. Investors do not receive ownership or shareholder rights in the private company. Instead, they receive economic exposure through an obligation of the note issuer.
The platform is designed to address two major barriers in private markets: access and liquidity. Ondo says eligible holders can transfer the tokens and trade their positions on secondary markets without waiting for an IPO.
- 24/7 secondary-market trading
- Self-custody and onchain transfers
- Exposure to individual private companies
- Planned expansion beyond artificial intelligence
AI Leads the Expansion
Ondo said the first private-market exposure will involve an unnamed leading AI company. The firm plans to expand into robotics, cybersecurity, biotechnology, infrastructure and other sectors.
The move builds on Ondo’s existing tokenized-asset business. The company says its stock and Treasury platforms collectively hold about $3.7 billion in total value locked and have more than 1 million cumulative holders.
Ondo’s announcement comes as private companies remain private for longer, keeping some of the largest technology and growth opportunities outside traditional public markets. However, the new product also carries structural risks because investors are buying notes linked to private-company performance rather than the underlying equity itself.
The first market is expected to begin secondary trading this week, with availability restricted to eligible investors in permitted jurisdictions.
