Financeupdated 2h ago2 min read
Ondo Finance Launches Ondo Private Markets With Tokenized Pre-IPO AI Exposure
Ondo Finance launched Ondo Private Markets offering tokenized notes tied to private companies' value. First asset unnamed pre-IPO AI company, 24/7 secondary trading for eligible non-U.S. investors.
Ondo Private Markets Launch
Ondo Finance launched Ondo Private Markets to provide eligible investors tokenized exposure to the economic performance of industry-defining private companies before they go public. Ondo Finance said the first market starts with a pre-IPO AI company and that the first market will launch this week with permissionless trading available on secondary markets. Ondo Finance described the notes as giving economic exposure without direct ownership of the company’s shares, and it said eligible investors can hold the notes in self-custody wallets or trade them on secondary markets around the clock.
Ian De Bode, acting chief executive officer and president of Ondo Finance, said the platform is designed to bring private-company exposure onto "24/7 trading on permissionless rails." Ondo Finance said it currently operates infrastructure supporting $3.7 billion in total value locked, or TVL, and more than 1 million cumulative holders.
How the Notes Pay
Ondo Finance said Ondo Private Markets uses tokenized notes whose payouts are linked to the per-share value realized on the referenced company’s common shares at a qualifying liquidity event. Ondo Finance said the first notes are expected to start trading this week, and it said products tied to robotics, cybersecurity, biotech, and infrastructure are planned to follow. Ondo Finance said the tokens are freely transferable and composable onchain, and it said the tokens are obligations of their issuer, not shares in the referenced companies.
Ondo Finance said eligible investors will be able to enter, exit, or adjust positions anytime, no longer needing to wait for an IPO to realize liquidity. PR Newswire quoted Ian De Bode saying, "Ondo Private Markets is built to change that, bringing tokenized exposure to the world's best companies with 24/7 trading on permissionless rails."
Eligibility and Legal Limits
Ondo Finance said Ondo Private Markets is offered to eligible investors outside the US, and it said US persons and investors located in the country will not be allowed to participate. Ondo Finance said the tokens have not been registered under the US Securities Act of 1933, and it said the tokens may not be offered or sold in the United States or to US persons unless registration or a valid exemption applies. Ondo Finance said persons who place buy orders from within the United States are prohibited from subscribing for, acquiring or redeeming the Tokens.
Ondo Finance said the tokens provide their holders with economic exposure to the value of their underlying assets, but it said the tokens are not themselves stocks and do not provide holders with rights to hold or receive their respective underlying assets. Ondo Finance said it runs a separate U.S. securities business through Oasis Pro Markets, which is SEC-registered and holds FINRA authorizations covering tokenized securities for U.S. investors under its own separate structure.