Ondo Finance Launches Tokenized Notes for Pre-IPO AI Company

Ondo Finance has introduced Ondo Private Markets, a platform that offers tokenized notes linked to private companies, providing investors with exposure to pre-IPO firms. The first note is tied to an unnamed artificial intelligence company, with additional notes planned for sectors like robotics, cybersecurity, biotech, and infrastructure. These notes are not equity instruments, meaning holders do not receive ownership, voting rights, or dividends. Instead, their value is derived from a potential future liquidity event, such as an initial public offering (IPO) or acquisition.

The notes are issued by Ondo Global Markets (BVI) Limited, a special purpose vehicle based in the British Virgin Islands. This structure ensures that investors rely on the issuer for payouts rather than holding direct claims on the private company’s shares. The product is available only to eligible non-US persons under SEC Regulation S, excluding US retail investors from participation.

Ian De Bode, acting leader of Ondo Finance, highlighted the limited investment options for retail investors, noting that 87 percent of US companies with over $100 million in revenue remain private. Ondo’s platform aims to bridge this gap by offering freely transferable notes on blockchain networks, avoiding the delays associated with traditional private share trading platforms like Hiive and EquityZen.

The broader market for tokenized real-world assets is currently valued near $39 billion, according to rwa.xyz. Ondo’s move follows similar efforts by other firms, including a venture fund tied to Robinhood, which invested $75 million in OpenAI common stock, and Citi’s reported plans for a blockchain marketplace for private company shares.