Ondo opens private markets with tokenized AI company notes

24/7 secondary-market trading is the promise behind Ondo Finance’s new Private Markets platform, introduced with notes tied to a pre-IPO AI company. The product is designed to give eligible investors economic exposure to private firms before they go public, with a way to trade their positions before a qualifying liquidity event.

Ondo said in its Private Markets announcement on Oct. 5 that its first market would launch this week. The company has not named the AI firm. Ondo expects to add exposure to companies in robotics, cybersecurity, biotech and infrastructure.

What do the tokenized notes give investors?

The notes provide economic exposure linked to a company’s per-share value at a qualifying liquidity event. According to Ondo, each note’s payout is linked to the value realized on the referenced company’s common shares at that event.

That structure does not make a note a share in the company. The Block reported that the notes do not confer ownership or shareholder rights; they are obligations of the issuer. So if you hold one, you have exposure defined by the note’s terms, not direct ownership of the underlying business.

Ondo says eligible investors can hold the tokens in self-custody wallets or trade them on secondary markets. The company describes the tokens as transferable and composable onchain, meaning they can move between eligible holders and may work with compatible blockchain applications.

Who can trade them, and when?

Ondo says the first market is expected to begin secondary trading this week, with trading available around the clock. The Block reported that access is limited to eligible non-U.S. investors in permitted jurisdictions.

The 24/7 schedule describes when trading may take place; it does not guarantee that a buyer or seller will always be available. Private-company shares do not have the continuous public market used to price listed stocks, and a note’s eventual payout depends on the terms and the specified event.

Ondo’s current product information says notes can be traded on its Ondo Perps Spot Market, subject to platform maintenance, risk controls and issuer pauses. It also says market prices are set by buyers and sellers and can differ significantly from the company’s latest private valuation or the eventual note payout.

What counts as a liquidity event?

Ondo’s product information lists several possible triggers, including a public listing that trades for six months, an acquisition of majority control, bankruptcy or liquidation. It also lists ten years passing without one of the other events. Ordinary funding rounds and employee tender offers do not count.

The launch extends tokenization into private-company exposure, where investors have historically faced limited access and fewer ways to sell. Ondo says it plans to expand beyond the initial AI market, but the first note’s company, launch date and trading venues beyond its stated platform have not been disclosed.

Sources

• Private Markets announcement — ondo.finance