Key highlights:
- Ondo Finance is expected to launch Ondo Private Markets this week.
- The platform allows investors to access private companies before they go public.
- ONDO price remains negative despite the latest development.
Ondo Finance is expanding beyond traditional tokenized assets, bringing tokenization into private markets. The latest reports reveal that the company is launching Ondo Private Markets this week. The platform will start with a pre-IPO AI company, giving eligible investors onchain exposure before the company reaches the public market.
Ondo Finance brings private company exposure onchain
According to a press release, Ondo Finance is taking its tokenization strategy to another level by bringing private-market exposure onchain. Via its Ondo Private Markets, a platform expected to be launched this week, investors will be able to gain economic access to selected private companies. Ondo Finance stated,
“Ondo Finance today announced Ondo Private Markets, which will bring tokenized notes delivering the economic performance of industry-defining private companies onchain. Starting with a pre-IPO AI company, the first market will launch this week with permissionless trading available 24/7 on secondary markets.”
Initially, the platform will focus on a pre-IPO AI company. Soon, it will be followed by more private companies from areas including robotics, cybersecurity, biotech, and infrastructure. The assets could also be traded on secondary markets, providing more flexibility for traders. This means that traders need not have to wait for the company to go public to start trading.
Why is Ondo Finance targeting private markets?
Ondo Finance’s latest move is particularly important as a large share of major US companies remain privately held. It is also worth noting that about 87% of US companies with more than $100 million in annual revenue are private. These companies have played a major role in the development of areas like artificial intelligence. But their reach to ordinary investors is limited unless they go public. Ondo Finance Acting CEO Ian De Bode noted,
“In the US, the majority of the investment options accessible for retail are public companies, yet 87% of companies with over $100m in revenue are private. That’s where many of the leaders defining the next era of our economy are emerging, and retail investors can’t access them today. Ondo Private Markets is built to change that, bringing tokenized exposure to the world’s best companies with 24/7 trading on permissionless rails.”
Via the launch of Ondo Private Markets, the company intends to address this gap. The new platform offers tokenized notes linked to the economic performance of selected private companies. Thus, eligible investors can access these companies even before they launch an IPO.
Another key feature is liquidity. Traders will be more flexible with their positions. The tokenized products can be traded on secondary markets 24/7. Investors can buy, sell, or adjust their holdings even if these companies haven’t gone public.
ONDO price fails to react positively
While Ondo Finance’s latest move marks a major milestone, it has failed to trigger a notable price rally in its native token. Instead, the ONDO price is currently showing negative trends, despite a 32% monthly spike.
Over the past 24 hours, the ONDO token has slipped by a marginal 0.5%. On a weekly basis, it dropped by more than 3.5%. At the same time, the trading volume is up by 4%, highlighting the community’s optimism amid the recent development.
Source:: Ondo Finance Is Opening Private Markets With Tokenized Pre-IPO AI Exposure