Ondo launches private-market tokens with pre-IPO AI exposure

Ondo Finance introduced Ondo Private Markets on Oct. 5, offering eligible investors tokenized economic exposure to private companies through 24/7 secondary trading, beginning with AI, according to the company’s announcement.

How will Ondo’s private-company notes work?

Each note’s payout is linked to the per-share value of a company’s common shares at a qualifying liquidity event, Ondo said. Eligible investors can hold notes in their own wallets or trade them on secondary markets before the company goes public.

The first market, tied to an unnamed pre-IPO AI company, is expected to begin trading this week. Ondo said it plans to add exposure to companies in robotics, cybersecurity, biotech and infrastructure.

Do the tokens give investors shares in the companies?

No. The notes are obligations of their issuer and do not provide ownership or shareholder rights in the referenced companies, The Block reported. The publication said they are available only to eligible non-U.S. investors in permitted jurisdictions.

Ondo describes the notes as transferable and composable onchain. The company says secondary trading is intended to let holders adjust or exit exposure without waiting for an IPO or another qualifying liquidity event.

When will the first AI market open?

Ondo said the first market is expected to launch this week, with secondary trading available around the clock. Its announcement did not name the AI company or give a specific trading date.

The launch extends Ondo’s tokenized-asset business into private companies. The company said its existing tokenized stocks and Treasurys platforms had $3.9 billion in total value locked and more than 1 million cumulative holders; The Block reported $3.7 billion in combined value locked.

Sources

• company’s announcement — ondo.finance
• The Block reported — theblock.co