Ondo Finance Launches Private Markets Platform With 24/7 Tokenized Access to Pre-IPO AI Company
Key Takeaways
- •Ondo Finance launched Ondo Private Markets to give eligible investors in permitted jurisdictions onchain economic exposure to private companies before an IPO, with the first offering targeting an unnamed pre-IPO AI company and secondary trading set to begin this week.
- •The platform issues tokenized notes whose payouts are tied to a referenced company's per-share value during a qualifying liquidity event such as an IPO or acquisition, so investors receive no ownership or shareholder rights in the underlying company.
- •Eligible holders can transfer tokens in self-custody and trade positions on blockchain-based secondary markets around the clock without waiting for an IPO, addressing long-standing access and liquidity barriers in private markets.
- •Ondo plans to expand the platform beyond artificial intelligence into sectors including robotics, cybersecurity, biotechnology and infrastructure, building on existing stock and Treasury platforms that hold about $3.7 billion in total value locked with more than 1 million holders.
Ondo Finance has launched Ondo Private Markets, a new platform that gives eligible investors onchain economic exposure to private companies before they go public. According to the company's announcement, the first offering will target a pre-IPO artificial intelligence company, with secondary-market trading expected to begin this week.
The launch extends Ondo's tokenization strategy beyond public stocks and U.S. Treasuries. The company says eligible investors in permitted jurisdictions will be able to trade the new instruments around the clock through blockchain-based secondary markets.
A New Route Into Private Markets
Ondo Private Markets is built on tokenized notes rather than shares in the underlying companies. Each note ties its 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 matters. Investors do not receive ownership or shareholder rights in the private company. Instead, they gain economic exposure through an obligation of the note issuer — which means any payout depends on a qualifying liquidity event taking place and on the issuer's obligation being met.
The platform is designed to address two long-standing barriers in private markets: access and liquidity, constraints that have historically limited individual participation in pre-IPO opportunities. Ondo says eligible holders can transfer their tokens and trade positions on secondary markets without waiting for an IPO, in contrast to conventional private-company stakes that offer few chances to sell before an exit. Key features include:
- 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 accumulated more than 1 million holders.
Ondo's announcement comes as private companies stay private for longer, keeping some of the largest technology and growth opportunities outside traditional public markets. The new product also carries structural risks, however, 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. Beyond the launch itself, the details worth watching are which jurisdictions ultimately qualify as permitted and how quickly Ondo adds companies and sectors beyond the first AI offering.
