Ondo Private Markets launched on October 6 with tokenized notes tied to the per-share value of selected private companies, beginning with a pre-IPO artificial-intelligence company.
The notes were expected to start trading on secondary markets during the launch week, offering eligible investors transferable exposure before a public listing, according to The Block. They are not shares or equity ownership in the referenced companies; the tokenized instruments instead link payouts to their per-share value at a qualifying future liquidity event.
Ondo Private Markets starts with AI exposure
Ondo Finance announced the Private Markets offering on October 5, describing it as tokenized economic exposure to private companies for eligible investors before those businesses go public. The offering’s first reference asset is an AI company that Ondo did not identify in the announcement.
Ondo said it intends to broaden the programme beyond AI into robotics, cybersecurity, biotechnology and infrastructure. The planned expansion signals that the platform is intended to cover a range of private-company sectors, rather than operate as a single-asset product.
Tokens track liquidity-event value, not equity
The notes are neither shares nor equity ownership in the referenced company.
Qualifying liquidity events can include an initial public offering, an acquisition or a bankruptcy-related event. Ondo said the payout is linked to the per-share value of the company’s common shares when one of those events occurs.
The arrangement provides contractual economic exposure under the note, rather than direct participation in the company’s equity ownership or cap table.
Secondary trading is available around the clock
Ondo says eligible investors can transfer or trade the notes on secondary markets 24 hours a day, seven days a week, and can hold them in self-custody wallets. The stated model offers a secondary-market mechanism before a referenced company reaches a liquidity event, though the notes’ value remains tied to the terms of the instrument and the eventual qualifying event.
The product is unavailable to U.S. persons, according to Ondo’s Private Markets page. Secondary-market trading was expected to begin during the week of the October 6 launch.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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