Ondo Finance has launched Ondo Private Markets, a new product designed to give investors onchain economic exposure to leading private companies through tokenized notes, according to PR Newswire. The first offering will focus on an unlisted company in the artificial intelligence sector and is expected to begin secondary-market trading this week. Ondo said the tokens are not shares or equity in the underlying company. Instead, they are tokenized notes that give holders economic exposure to the value performance of a reference company’s common stock in a qualifying liquidity event. The tokens can be transferred onchain and used alongside DeFi applications. The company said the product is built on its existing onchain asset infrastructure. Across its tokenized equities and U.S. Treasuries platforms, Ondo reported about $3.7 billion in total value locked and more than 1 million cumulative holders. Ondo also said that most large U.S. companies remain private, and about 87% of companies with more than $100 million in annual revenue are not publicly listed. The firm said the new platform is intended to give eligible investors a more flexible, blockchain-based secondary market for adjusting private-market exposure around the clock.
Ondo Finance has launched Ondo Private Markets, a platform that uses tokenized notes to give investors onchain economic exposure to leading private companies, according to PR Newswire.
The first reference asset will center on an unlisted company in the artificial intelligence sector, with secondary-market trading expected to open this week.
How the product is structured
Ondo said the tokens do not represent shares or equity ownership in the underlying company. Instead, they are tokenized notes that provide holders with economic exposure to the value performance of a reference company’s common stock in a qualifying liquidity event.
The tokens can be transferred freely onchain and can also be used with DeFi applications, the company said.
Expansion plans
After the initial AI-focused offering, Ondo Private Markets plans to expand to private companies in robotics, cybersecurity, biotechnology and infrastructure.
Existing infrastructure and market backdrop
According to Ondo, the product is built on the firm’s existing onchain asset infrastructure. Its tokenized equities and U.S. Treasuries platforms currently account for about $3.7 billion in total value locked and more than 1 million cumulative holders.
Ondo Finance also said that most large U.S. companies remain private. Among companies generating more than $100 million in annual revenue, about 87% are not publicly listed. The firm said traditional investors often have limited access to the early growth phase of those businesses.
Ondo Private Markets is intended to offer a more flexible blockchain-based secondary market, allowing eligible investors to adjust private-market exposure on a 24/7 basis.
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