Ondo Finance debuts tokenized notes platform for pre-IPO tech companies
Ondo Finance has introduced Ondo Private Markets, offering tokenized notes tied to private companies starting with an unnamed pre-IPO artificial intelligence firm.
Ondo Finance announced a new product line called Ondo Private Markets, designed to provide tokenized exposure to late-stage private companies, according to Unchained. The platform's inaugural product is scheduled to begin secondary market trading this week and references an unnamed pre-IPO artificial intelligence firm.[4][1][6]
Under the offering's structure, buyers do not receive actual shares or shareholder voting rights. Instead, the tokens are issuer obligations that pay out based on what the underlying firm's common stock is worth per share when a qualifying liquidity event, such as an acquisition or public listing, occurs. Holders can store the notes in self-custody wallets, transfer them to other eligible holders, deploy them in decentralized finance, or trade them 24/7 on secondary markets.[4][1][2]
The instrument is open exclusively to eligible non-U.S. investors in permitted jurisdictions. Ian De Bode, Ondo's acting CEO and president, noted in a release that while 87% of companies generating over $100 million in revenue are private, retail access remains largely walled off in public markets. Ondo plans to expand the platform to companies in robotics, cybersecurity, biotech, and infrastructure, as well as defense, energy, and space. Ondo has not disclosed the name of the initial AI company or the secondary venues listing the notes.[4][3][5]
Key facts
- Ondo Finance launched Ondo Private Markets to offer tokenized notes tracking private tech companies.
- The first offering references an unnamed pre-IPO artificial intelligence company and is slated to begin trading this week.
- Payouts on the notes are tied to the referenced company's per-share common stock value upon a qualifying liquidity event.
- The notes are obligations of the issuer and convey no equity ownership or shareholder rights in the referenced firm.
- Trading is available 24/7 on secondary markets exclusively to eligible non-U.S. investors in permitted jurisdictions.
- Future markets are planned for sectors including robotics, cybersecurity, biotech, infrastructure, defense, energy, and space.
- Ondo stated that its infrastructure for tokenized stocks and Treasuries holds $3.7 billion in total value locked across over 1 million cumulative holders.
Sources · 6 sources
- TB
The Block@TheBlockCoPost on X ·
THE BLOCK: Ondo Finance launches tokenized notes tied to private tech companies, starting with a pre-IPO AI firm this week. The notes' payouts are linked to the company's per-share value at qualifying liquidity events and can trade 24/7 on secondary markets. https://t.co/l7p2UleCcN
Open source - JU
jussy@jussy_worldPost on X ·
Pre-IPO used to mean locking your money up for years @Ondo just turned it into a token that trades 24/7 If the company goes public or gets bought, it pays out on what a share is worth then You never hold the actual shares Eligible investors only, not available to US persons Trading expected later this week And first pre-IPO deal could drop in 48h 👀
Open source - CO
Cointelegraph@CointelegraphPost on X ·
🔥 NEW: Ondo is letting non-US investors trade a pre-IPO AI company onchain 24/7, starting this week. https://t.co/XSWRpuDbb2
Open source - UN
UnchainedArticle ·
Ondo’s New Tokenized Notes Tie Payouts to an Unnamed Pre-IPO AI Company Ondo Finance is extending its tokenization business from public stocks and Treasuries to companies that have not yet listed. The firm announced Ondo Private Markets on Tuesday, a product offering tokenized notes that track the value of individual private companies. The first market references an unnamed pre-IPO AI company and is expected to begin secondary trading this week. Ondo said robotics, cybersecurity, biotech and infrastructure names will follow, and a company blog post also lists defense, energy and space. The product is open only to eligible investors outside the U.S., in jurisdictions where it is permitted. Get Unchained’s crypto news in your inbox with the free Unchained Daily newsletter . How the Notes Work Payouts depend on what the referenced company’s common stock is worth per share when a “qualifying liquidity event” occurs, according to Ondo. Buyers do not get stock. The notes are obligations of their issuer and come with no ownership or shareholder rights in the underlying company, the release states. Holders can keep the tokens in self-custody wallets, send them to other eligible holders, trade them around the clock on secondary markets or deploy them in DeFi. Ondo said that tradability targets a long-standing problem in private markets, where investors can wait years for an IPO before they are able to sell. “In the US, the majority of the investment options accessible for retail are public companies, yet 87% of companies with over $100m in revenue are private. That’s where many of the leaders defining the next era of our economy are emerging, and retail investors can’t access them today,” Ian De Bode , Ondo’s acting CEO and president, said in the release . “Ondo Private Markets is built to change that, bringing tokenized exposure to the world’s best companies with 24/7 trading on permissionless rails.” A Different Structure From Ondo’s US Tokens Ondo said the infrastructure behind its tokenized stocks and Treasuries holds $3.7 billion in total value locked across more than 1 million cumulative holders. The new notes work differently from the tokenized BlackRock ETF and Micron shares Ondo brought onchain in July inside the U.S. regulatory perimeter. Those tokens are backed one-for-one by custodied securities and give holders proxy voting rights. Coinbase has offered pre-IPO exposure through a different instrument, derivatives. It listed SpaceX pre-IPO perpetual futures on its international exchange in June, also limited to users outside the U.S. Ondo has not said which AI company the first notes reference or which trading venues will list them. Related Listen: Why Robinhood Chain Saw Memecoins Take Off Before Real World Assets The post Ondo’s New Tokenized Notes Tie Payouts to an Unnamed Pre-IPO AI Company appeared first on Unchained .
Open source - CO
CoinDesk@CoinDeskPost on X ·
LATEST: @Ondo Finance launches Ondo Private Markets, bringing pre-IPO company exposure onchain with 24/7 tradeable tokenized notes starting with an AI company this week and expanding to robotics, biotech and cybersecurity. https://t.co/RgCrve6O57
Open source - FC
Frank Chaparro 🇸🇬@fintechfrankPost on X ·
Ondo Finance is bringing private-company exposure onchain. Its new Ondo Private Markets platform will offer tokenized notes tied to the value of private companies at qualifying liquidity events, with 24/7 secondary-market trading for eligible non-U.S. investors. The first product, offering exposure to a pre-IPO AI company, is expected to begin trading this week, with robotics, cybersecurity, biotech and infrastructure names to follow. https://t.co/JPuOrfgOJl
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