Ondo Tokenized RWA Platform Expands Into Private Markets

Real-world asset (RWA) tokenization platform Ondo Finance is entering the private investment market with a new offering that provides tokenized exposure to an undisclosed artificial intelligence company ahead of its initial public offering (IPO).

The company has introduced Ondo Private Markets, a platform offering tokenized notes linked to the financial performance of private companies. The initial product is designed to provide investors with economic exposure to a pre-IPO AI company without granting direct ownership of its shares.

Ondo Finance rxpands tokenization into private markets

Through Ondo Private Markets, investors can access tokenized notes whose payouts depend on the value realized per common share of the underlying company during a qualifying liquidity event, such as a potential IPO or acquisition. Unlike traditional equity investments, these instruments do not provide investors with direct ownership of the referenced company's shares. Instead, they offer contractual economic exposure tied to the company's eventual valuation at the relevant liquidity event.

Eligible investors will be able to store the notes in self-custody cryptocurrency wallets and trade them on secondary markets around the clock. According to Ondo Finance, the first tokenized notes are expected to begin trading this week, with additional products linked to private companies in robotics, cybersecurity, biotechnology, infrastructure and other industries planned for future release.

Ondo builds on its growing tokenized securities platform

The expansion into private markets follows the development of Ondo Stocks, the company's existing platform for tokenized US equities and exchange-traded funds (ETFs). According to Ondo, the platform has accumulated more than $1 billion in total value locked and currently offers over 450 tokenized stocks and ETFs.

The introduction of private-market products broadens Ondo's tokenization activities beyond publicly traded securities, potentially creating additional ways for eligible investors to gain exposure to companies that have not yet listed on traditional stock exchanges.

Financial institutions explore tokenized private investments

Ondo's latest initiative comes amid growing interest in expanding investor access to private companies through alternative investment structures and blockchain-based financial infrastructure. In April, Robinhood's venture fund invested $75 million in OpenAI common stock, aiming to provide retail investors with exposure to the private AI company through its publicly traded closed-end fund.

Meanwhile, reports in June indicated that Citi was preparing to introduce a blockchain-based marketplace for private-company shares. These developments reflect broader efforts across the financial industry to explore new methods of accessing private investments, with tokenization emerging as one approach to improving the transferability and accessibility of traditionally less liquid assets.

Sources:

https://cointelegraph.com/news/ondo-private-markets-tokenized-pre-ipo-ai

https://ondo.finance/blog/introducing-ondo-private-markets