Ondo to launch tokenized notes tied to private companies ahead of IPOs

Ondo Finance said it plans to launch Ondo Private Markets, a product that gives investors indirect exposure to private companies. Its first offering, aimed at artificial intelligence companies preparing for an initial public offering, is set to launch this week and will be tradable on the secondary market around the clock. Ondo said it plans to expand the investment universe to robotics, cybersecurity, biotech and infrastructure. Instead of directly holding shares in private companies, investors will buy tokenized notes. Once the actual per-share value of a company’s common stock is determined through an IPO or another event, the note payout will be set based on that value. Ondo said eligible investors in jurisdictions where such investments are permitted will be able to buy, sell or adjust positions at any time without waiting for an IPO. It added that the notes are obligations of the issuer, not the underlying private-company shares, and do not confer ownership or shareholder rights in those companies.