Ondo Opens Private Markets with Tokenized Pre-IPO AI Exposure
Real-world asset tokenization platform Ondo Finance has launched Ondo Private Markets, providing investors with tokenized notes linked to the value of a pre-IPO artificial intelligence company. This service enables exposure to the company's economic value without direct share ownership, with investors able to hold or trade the notes on secondary markets around the clock.
Ondo's New Product for Private Markets
Ondo Finance introduced Ondo Private Markets, a platform offering tokenized notes whose payouts depend on the value realized per share of an unnamed pre-IPO artificial intelligence company at a qualifying liquidity event. These notes provide economic exposure without requiring direct ownership of the company’s shares.
Qualified investors will be able to hold these notes in self-custody wallets or trade them on secondary markets around the clock. The first notes are expected to start trading this week, with plans to expand offerings to companies in robotics, cybersecurity, biotech, infrastructure, and other sectors.
Growth of Tokenized Asset Market and Competition
Ondo Stocks, another platform from Ondo focused on tokenized U.S. stocks and ETFs, currently holds over $1 billion in total value locked and offers more than 450 tokenized stocks and ETFs.
Other industry players are also expanding into private markets: Robinhood’s venture fund invested $75 million in OpenAI common stock to provide retail investor exposure via a publicly traded closed-end fund. In June, Citi announced plans to launch a blockchain marketplace for private company shares.
Why it matters
The launch of Ondo Private Markets is a significant development in decentralized finance and real-world asset tokenization, providing investors access to private companies at early stages through tokenized notes. This broadens portfolio diversification opportunities and simplifies liquidity trading, bypassing traditional barriers to private market access and direct share ownership.
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