Ondo Finance has opened a new platform called Ondo Private Markets, offering tokenized notes tied to private companies and giving eligible investors a way to gain exposure to businesses before they go public. The first product is a tokenized note referencing a pre-IPO artificial intelligence company that has not been named.

LATEST: ⚡️ Ondo unveiled Ondo Private Markets, offering eligible investors tokenized notes tied to private companies, starting with one pre-IPO AI company. pic.twitter.com/cHwWHsj6a7

— CoinMarketCap (@CoinMarketCap) October 6, 2026

The launch extends Ondo's tokenization business beyond publicly listed securities into private companies that have not gone public — a segment that has historically been out of reach for most retail investors.

The notes are structured differently from conventional shares. They are not equity: holders receive no ownership of the referenced company, no voting rights, and no dividends. In effect, note holders have a claim on the issuer, not on the private company itself. The value of each note is instead linked to what the company's shares would be worth if it goes public or is sold.

How the Notes Work

Payouts depend on a “qualifying liquidity event,” which could be an initial public offering or an acquisition. Investors can hold the tokens in their own digital wallets and trade them on secondary markets at any time, day or night.

Ondo said the first notes are expected to begin trading this week. Additional notes tied to companies in robotics, cybersecurity, biotech, and infrastructure are planned for later.

The issuer of the notes is Ondo Global Markets (BVI) Limited, a separate legal entity set up in the British Virgin Islands. The structure matters because buyers are relying on that entity to pay out, rather than holding a direct claim on the private company's shares. In practice, note's outcome depends on two things at once: the referenced company reaching a qualifying liquidity event, and the issuer's ability to honor its obligation.

Ondo's existing product, Ondo Stocks, works differently. That platform offers tokenized versions of public stocks and exchange-traded funds backed by real securities. Ondo Stocks holds more than $1 billion in total value locked and provides access to more than 450 tokenized stocks and funds.

Who Can Buy the Notes

The private market notes are offered under SEC Regulation S, an exemption that permits offers and sales of securities outside the United States without registration under US securities laws. The notes are therefore available only to eligible non-US persons, and US retail investors cannot buy, hold, or redeem the tokens under current rules.

Ian De Bode, the acting leader of Ondo Finance, said most investment options for retail investors are public companies. He added that 87 percent of US companies with more than $100 million in revenue are private. Ondo argues this leaves out many of the companies building newer technology before they ever list on a stock exchange.

Other Firms Move Into Private Markets

Several other firms have made similar moves into private company access this year. A venture fund tied to Robinhood put $75 million into OpenAI common stock earlier in the year, giving retail investors indirect exposure through a publicly traded fund. Citi was also reported earlier this year to be building a blockchain marketplace for private company shares.

Established platforms such as Hiive and EquityZen already let accredited investors trade private shares. Hiive was valued at $650 million in late 2025, and EquityZen is now owned by Morgan Stanley. Both platforms can face delays from rules that give companies the first right to buy back shares before they are sold to outsiders. Ondo says its notes avoid this friction because they are freely transferable on blockchain networks.

The broader market for tokenized real-world assets is now valued near $39 billion, according to tracking site rwa.xyz.

Ondo plans to expand its private market notes into more sectors in the coming months, starting with the single AI-linked product rolling out this week. The near-term markers to watch are whether the first notes begin trading on schedule and which companies the planned robotics, cybersecurity, biotech, and infrastructure notes reference.

Source: CoinCentral