Ondo Opens Tokenized Private Markets

Ondo Finance has launched Ondo Private Markets, a platform giving eligible non-U.S. investors tokenized exposure to private companies before they go public. Its first product will reference an unnamed pre-IPO artificial intelligence company, with secondary trading expected to begin this week.

The launch expands Ondo beyond tokenized public stocks and Treasuries into private-company investments, where access and opportunities to exit positions before an IPO have traditionally been limited.

Tokenized Notes Track Private-Company Value at Liquidity Events

Investors will not receive shares in the referenced AI company. Instead, Ondo Private Markets uses tokenized notes whose payouts are linked to the per-share value realized on the company’s common stock at a qualifying liquidity event.

The notes are obligations of their issuer and do not provide voting rights, ownership in the underlying company or a right to receive its shares. Ondo has not disclosed which AI company its first product will reference.

Eligible Investors can Trade Notes Around the Clock

Ondo’s private-market tokens can be held in self-custody wallets and transferred between eligible holders. Supported secondary markets can also enable 24/7 trading, allowing investors to buy, reduce or exit positions without waiting for the referenced company to complete an IPO.

The tokens are designed to work with supported on-chain applications, opening the possibility of integration with blockchain-based trading and financial services. However, trading and transfers remain subject to investor eligibility and jurisdictional restrictions.

U.S. Investors are Excluded From Private-Market Tokens

Ondo says its private-market products are available only to eligible non-U.S. investors in permitted jurisdictions.

The tokens are not registered under the U.S. Securities Act and cannot be offered or sold to U.S. persons unless an applicable exemption is available.

The restrictions apply even though the tokens can be held in self-custody wallets and transferred on-chain.

First AI-Linked Note is Expected to Trade This Week

Ondo plans to expand Private Markets beyond its first AI-linked product, with future notes expected to reference companies in robotics, cybersecurity, biotechnology, infrastructure, and other private-market sectors.

The company already offers more than 450 tokenized stocks and ETFs through Ondo Stocks. It reports approximately $3.7 billion in total value locked across its stock and Treasury platforms and more than one million cumulative holders.

The first private-company note is expected to begin secondary-market trading this week. Ondo has not announced a confirmed trading date or identified the company behind the initial offering.