Ondo Finance Launches Ondo Private Markets to Put Pre-IPO AI Investment Products On-Chain

Ondo Finance is launching Ondo Private Markets, a platform that will let investors trade on-chain tokenized products linked to the value of private companies.

According to PR Newswire on October 6, Ondo Private Markets will offer tokenized note products tied to the per-share value of major private companies. The first product is based on an artificial intelligence company preparing for an initial public offering and will begin trading on the secondary market around the clock this week. Ondo plans to later expand the offering to companies in robotics, cybersecurity, biotech and infrastructure.

The products are linked to the per-share value determined when a private company's common stock goes through a liquidity event such as an IPO. The tokens are not actual shares and do not grant ownership or shareholder rights in the underlying company.

Ondo said the tokens are being designed to move freely and be used across the decentralized finance, or DeFi, ecosystem. Eligible investors will be able to buy, sell or adjust positions in the secondary market without waiting for an IPO.

"Many of the companies driving the next generation of the economy remain private, but retail investors currently have limited access to them," Ian De Bode, acting chief executive officer and president of Ondo Finance, said. He added that Ondo Private Markets will provide tokenized investment exposure to major private companies and a 24-hour trading environment.

Ondo Finance currently operates infrastructure supporting $3.7 billion in total value locked, or TVL, and more than 1 million cumulative holders, including tokenized stock and US Treasury products.

The product will be offered to eligible investors outside the US. US persons and investors located in the country will not be allowed to participate.