TheBlock
Ondo Finance plans to bring private-company exposure onchain through Ondo Private Markets, starting with a pre-IPO AI company whose tokenized notes are expected to begin secondary-market trading this week. The notes track per-share value at qualifying liquidity events, are transferable and composable onchain, and are designed for around-the-clock position changes by eligible investors.
Why it matters
The notes are not shares and confer no ownership or shareholder rights. They are obligations of the issuer, available only to eligible non-U.S. investors in permitted jurisdictions. Ondo Acting CEO Ian De Bode said 87% of companies with more than $100 million in revenue are private, while most investment options accessible to U.S. retail investors are public companies.
The initial AI offering is expected to be followed by companies in robotics, cybersecurity, biotech and infrastructure. The product extends Ondo's effort to put traditional financial exposure onchain, building on its tokenized stocks and Treasurys platforms.
Market impact
Ondo says those platforms have $3.7 billion in total value locked and more than 1 million cumulative holders. Tokenized equities have surpassed $42 billion in market capitalization, about 35% of the broader $121 billion tokenized-asset market, according to The Block's data.
The first market's expected launch this week will test demand for tokenized claims linked to private companies, as well as the role of transferable, 24/7 secondary trading. Ondo also partnered with Japan's SBI Holdings in July to tokenize Japanese equities, with SBI planning to distribute Ondo products and use its JPYSC stablecoin for settlement and collateral.
Frequently asked questions
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What do Ondo Private Markets notes represent?
They are issuer obligations tied to the per-share value of selected private companies at qualifying liquidity events. They are not shares and do not confer ownership or shareholder rights.
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Who can access Ondo's private-company notes?
The notes are available only to eligible non-U.S. investors in permitted jurisdictions.
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What company is tied to Ondo's first private-market offering?
The first offering is tied to a pre-IPO artificial intelligence company, with secondary-market trading expected to begin this week.
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Which sectors could follow the initial AI offering?
Ondo said robotics, cybersecurity, biotech and infrastructure companies are expected to follow.
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How large are Ondo's tokenized stocks and Treasurys platforms?
Ondo says the platforms have $3.7 billion in total value locked and more than 1 million cumulative holders.
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