Ondo Finance launches on-chain tokenized private market product, with the first underlying asset being a pre-IPO company in the AI sector.

BlockBeats news, October 6 — Ondo Finance announced the launch of Ondo Private Markets, offering investors on-chain economic exposure to top private companies through Tokenized Notes.

The first underlying target will focus on a pre-IPO AI company, with secondary market trading expected to open this week. Ondo Private Markets then plans to expand to private companies in sectors such as robotics, cybersecurity, biotechnology, and infrastructure.

Ondo said the tokens do not correspond to shares or equity in the companies, but instead use tokenized notes to give holders economic exposure to the value performance of the reference company's common stock in qualifying liquidity events, such as an IPO or M&A. The tokens can be freely transferred on-chain and used in combination with the DeFi ecosystem.

The product is built on Ondo's existing on-chain asset infrastructure. Its related tokenized stocks and U.S. Treasury platform currently have a combined total of about $3.7 billion in TVL and more than 1 million cumulative holders.

Ondo Finance said most large U.S. companies are still private, with about 87% of companies generating more than $100 million in annual revenue being unlisted, and traditional investors usually find it difficult to participate in these companies' early growth opportunities. Ondo Private Markets aims to provide a more flexible trading channel through a blockchain-based secondary market, enabling eligible investors to adjust private market exposure around the clock.