Ondo Finance announced Ondo Private Markets on October 6, 2026. The product gives eligible investors tokenized exposure to private companies before those companies go public. The first market references a pre-IPO artificial intelligence company, and Ondo has not named it. Notably, the notes trade around the clock, which sets them apart from most private-company products. However, the notes do not carry the same rights as shares, and that distinction shapes every other detail of the launch.
Introducing Ondo Private Markets. Tokenized exposure to industry-defining private companies, with 24/7 trading. The first market is now live. As leading companies stay private longer, retail investors miss out on some of the largest wealth-creation opportunities. Even with access, investors may have to wait years to sell. Ondo Private Markets changes that, giving eligible investors exposure to leading companies before they go public. Investors can trade permissionlessly on a secondary order book 24/7, entering, exiting, or adjusting their exposure before an IPO. Starting with AI, Ondo Private Markets offers exposure to leading companies in robotics, cybersecurity, biotech, infrastructure, and more. The first market is just the beginning. Ondo is building toward the broadest selection of private-company exposures onchain and the most liquid market for trading them.
— Ondo Finance (@Ondo) October 8, 2026
Why Ondo Is Targeting Private Companies
Ondo built the product around a simple observation about where growth now happens. Companies stay private longer than they used to, so much of their value creation occurs before public investors can participate. Ian De Bode, Ondo’s acting CEO, put the problem in numbers. He said 87% of U.S. companies with more than $100 million in revenue remain private. As a result, retail investors often miss the stage when a business grows fastest. Even investors with access to private deals may wait years before they can sell. Ondo argues that a tradable token can shorten that wait, because holders can exit on a secondary market instead of waiting for an IPO.
How the Notes Work
The tokens are notes, not shares. A separate issuer, PM Issuer Co (BVI) Limited, creates them, according to the launch press release. Each note pays out based on the per-share value of the referenced company’s common stock at a qualifying liquidity event. Ondo’s product page describes the payout as one note for one share at the liquidity event price. Taxes and settlement fees reduce that payout. Holders receive no voting power, no shareholder rights, and no direct ownership stake. In other words, the note works as a contractual claim on the issuer, which tracks the value of a private company.
What Triggers a Payout
The qualifying liquidity event matters more here than it would for a public stock. According to Ondo’s product page, several events can trigger redemption. A public listing counts, and it carries a six-month trading requirement. A majority acquisition counts as well. Bankruptcy, insolvency, or a substantial liquidation of assets also qualify. Finally, a ten-year anniversary triggers redemption if none of the other events has occurred. Consequently, a holder who wants a payout at full redemption value may wait a long time. Most holders will likely use the secondary market instead, where buyers and sellers set the price.
Where and How the Notes Trade
Ondo says investors can trade the notes 24/7 on secondary markets. The product page names the Ondo Perps Spot market as the primary venue and says Ondo may enable others later. Trading remains subject to maintenance, risk controls, and issuer pauses. Holders keep the tokens in their own wallets and can transfer them to other eligible holders. Notably, the notes are composable onchain, so developers can integrate them into DeFi applications. Ondo’s materials do not name the blockchain network for the notes, so readers should check contract details before assuming a chain.
The product page also warns that spreads can run wide. No consensus benchmark price exists for private shares. Therefore, the secondary price can differ significantly from the company’s latest private valuation. Continuous trading hours do not guarantee deep liquidity, and a thin order book can move quickly.
Who Can Access It
The word permissionless describes the trading mechanics, not who can enter. Ondo limits the offer to eligible non-U.S. investors in permitted jurisdictions. U.S. persons cannot subscribe, acquire, or redeem the tokens under Regulation S. Ondo has not registered the tokens under the U.S. Securities Act of 1933. Accordingly, retail investors in the United States remain shut out of this particular product. The risk disclosures also state that holders may lose their entire purchase price.
Ondo’s Wider Tokenization Push
Ondo launches this product from a larger base. The company says its tokenized stocks and Treasurys platforms hold $3.7 billion in total value locked and have drawn more than one million cumulative holders. Additionally, Ondo announced a partnership in July 2026 with Japan’s SBI Holdings to tokenize Japanese equities. Tokenized equities now account for roughly $42 billion of a $121 billion tokenized asset market, according to The Block. Private companies represent the next obvious target for that model. Ondo says it wants to build the broadest selection of private-company exposures onchain, along with the most liquid market for trading them.
What to Watch Next
Several open questions will decide whether the product succeeds. First, Ondo has not named the first company, so investors cannot yet judge the underlying business directly. Second, the launch materials do not publish a full fee schedule, which makes true trading costs hard to estimate. Third, secondary liquidity will determine how closely the token price tracks private valuations. Meanwhile, Ondo plans to add robotics, cybersecurity, biotech, and infrastructure companies. Each new market will test whether the 24/7 order book can attract enough buyers and sellers. For now, the launch shows how far tokenization has moved beyond Treasurys and public stocks, and it also shows how much legal structure sits behind each token.
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