Ondo Says Hold My Pre-IPO Beer 🍺: Tokenized AI Notes Hit Onchain With 24/7 Trading

Real-world asset tokenization platform Ondo Finance is opening private-company investing to eligible non-US investors with a new product line called Ondo Private Markets, the company announced. The first product is a tokenized note whose payout is tied to the value per common share of an unnamed pre-IPO artificial intelligence company at a qualifying liquidity event. The note gives holders economic exposure to the company without granting direct ownership or shareholder rights, according to Ondo.

Eligible investors can hold the notes in self-custody wallets or trade them on secondary markets around the clock, with the first notes expected to start trading this week. Ondo said additional products linked to companies in robotics, cybersecurity, biotech, infrastructure and other sectors are planned to follow. Access is restricted to authorized jurisdictions outside the United States, and the tokens can be transferred across supported blockchain platforms and decentralized finance services.

The launch builds on Ondo's existing tokenization footprint. Ondo Stocks, the company's platform for tokenized US stocks and exchange-traded funds, has more than $1 billion in total value locked and offers more than 450 tokenized stocks and ETFs, according to the company. Franklin Templeton and Ondo have also announced plans to launch tokenized ETFs with 24/7 trading via crypto wallets.

Other financial firms are pushing into private-markets exposure through blockchain infrastructure. In April, Robinhood's venture fund invested $75 million in OpenAI common stock to provide retail exposure through its publicly traded closed-end fund. Citi was reported in June to be launching a blockchain-based marketplace for private-company shares. Ondo's entry places it alongside these efforts as tokenized private-market products continue to expand across the industry.