Ondo launches tokenised notes tied to private company valuations
Updated: 4 days ago
Ondo Finance launched Ondo Private Markets on 6 October 2026, a product of tokenised notes that give investors economic exposure to private companies, starting with an unnamed pre-IPO artificial intelligence company. The notes do not confer ownership or shareholder rights, The Block reported.
A tokenised note is a digital claim recorded on a blockchain. Here, according to Ondo and Cointelegraph, the payout is linked to the per-share value of the referenced company at a qualifying liquidity event, such as a stock market listing or a sale of the business.
How Ondo Private Markets tokenised pre-IPO notes work
Ondo says the notes can be held in self-custody wallets, are freely transferable between eligible holders and can trade on secondary markets around the clock, with first trading expected in the week of the announcement. It plans to add notes referencing robotics, cybersecurity, biotech and infrastructure companies.
The Block reports that the product is available only to eligible investors outside the United States in permitted jurisdictions. Ondo's own announcement refers to eligible investors without setting out the criteria, and none of the sources reviewed says whether UK investors are covered.
Ian De Bode, Ondo's acting chief executive and president, said, as quoted by The Block, that most investment options open to retail investors in the US are public companies, while 87 per cent of companies with more than 100 million dollars in revenue are private.
What the notes mean for private company liquidity
For founders and employees, the key point is what the notes are not. A holder of one does not own a share, and none of the sources says whether the referenced company took part in the launch or consented to it. The price of the note and the liquidity it offers depend on trading in the note itself, not on any sale of the company's shares.
That separates it from the UK model. The Private Intermittent Securities and Capital Exchange System (PISCES) is the FCA's framework for trading actual shares in private companies through intermittent trading events. The FCA is running a PISCES sandbox until June 2030 to test the rules with real companies and investors, and the company takes part in setting up each trading window.
Why FCA financial promotions rules matter for UK investors
Whether a UK investor could reach these notes is unresolved. If an offer of this kind were marketed to people in the UK, FCA financial promotions rules and the boundary of regulated activity would be the first questions to ask, and Ondo has not said how it treats UK users. The FCA has not commented on this product.
The launch also fits a wider pattern. Tokenised stock platforms operating without UK authorisation have already drawn regulatory attention, and a pre-IPO note is a further step along the same line, from tokenised shares in listed companies to exposure to unlisted ones.
For UK founders, the practical reading is that demand for exposure to private companies is being met by products that sit outside the company's cap table. That is a reason to understand which route to liquidity a company actually controls. This is general information, not legal, tax or investment advice.
Key takeaways
Ondo Finance launched Ondo Private Markets on 6 October 2026, offering tokenised notes linked to private company valuations.
The notes pay out according to per-share value at a qualifying liquidity event and do not confer ownership or shareholder rights.
The Block reports the product is limited to eligible investors outside the United States, and no source reviewed addresses UK access.
The first note references an unnamed pre-IPO artificial intelligence company, with robotics, cybersecurity, biotech and infrastructure notes planned.
PISCES trades real shares through company-supported trading windows, whereas the notes give exposure without a share or any company role.
Disclaimer
This article is provided for general information only and does not constitute legal, financial, or investment advice. The regulatory treatment of tokenised assets and digital securities varies by jurisdiction and continues to evolve. Readers should seek independent professional advice before making any financial, legal, or regulatory decisions.
Frequently asked questions
What is Ondo Private Markets?
Ondo Private Markets is a product of tokenised notes launched by Ondo Finance on 6 October 2026. The notes give investors economic exposure to private companies, starting with an unnamed pre-IPO artificial intelligence company.
Do Ondo Private Markets notes give shareholder rights?
No. The notes do not confer ownership or shareholder rights. Their payout is linked to the per-share value of the referenced company at a qualifying liquidity event, such as a stock market listing or a sale of the business.
Can UK investors buy Ondo's tokenised pre-IPO notes?
This is unresolved. The Block reports the product is available only to eligible investors outside the United States in permitted jurisdictions, and none of the sources reviewed says whether UK investors are covered.
How do Ondo's tokenised notes differ from PISCES in the UK?
PISCES is the FCA's framework for trading actual shares in private companies through intermittent trading events, with the company taking part in setting up each trading window. Ondo's notes give economic exposure without a share or any role for the company.
Which sectors will Ondo Private Markets cover next?
Ondo plans to add notes referencing robotics, cybersecurity, biotech and infrastructure companies.
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