Ondo launches notes tied to an unnamed private AI company

Ondo Finance announced Oct. 6 that it is launching tokenized notes tied to private companies, beginning with an unnamed pre-IPO artificial intelligence company. The company said secondary trading for the first note is expected to start during the week of Oct. 6, but the announcement does not establish that trading has begun. The notes are intended to give eligible non-U.S. investors economic exposure to the value of a referenced private company’s shares at qualifying liquidity events. Ondo said the notes are obligations of their issuer, not shares in the underlying company. Holders do not receive ownership, voting rights or other shareholder rights. Ondo described the notes as transferable and designed for around-the-clock secondary trading. That does not mean the products are open to all investors: access is limited to eligible non-U.S. investors in permitted jurisdictions. Actual market liquidity will depend on participation, and Ondo has not named trading venues for the first note. The company has not publicly identified the AI business referenced by the initial product or disclosed the complete payout formula.