Ondo Finance Expands into Private Markets with Tokenized AI Notes

Ondo Finance, a platform specializing in real-world asset tokenization, is venturing into private markets with a new product offering. The company has launched Ondo Private Markets, which provides tokenized notes linked to the value of shares in an unnamed pre-IPO artificial intelligence company. These notes allow investors to gain economic exposure to the company without actually owning its shares, and they can be held in self-custody wallets or traded on secondary markets 24/7.

The first set of these notes is expected to begin trading this week, with plans to expand into sectors like robotics, cybersecurity, biotech, and infrastructure in the future. Ondo’s existing platform, Ondo Stocks, already offers tokenized US stocks and exchange-traded funds (ETFs), boasting over $1 billion in total value locked and more than 450 tokenized assets.

Other financial platforms are also exploring private market opportunities. In April, Robinhood’s venture fund invested $75 million in OpenAI common stock, aiming to provide retail investors with exposure through a publicly traded closed-end fund. Additionally, Citi was reported in June to be developing a blockchain marketplace for private-company shares.