Mubadala Capital, the asset management division of Abu Dhabi’s state-owned investment fund, has started using blockchain technology by bringing one of its private investment funds ‘onchain.’ This makes them a recent addition to the growing number of large financial companies exploring tokenization.
I just heard that a big asset manager – they handle around $430 billion! – is now offering a digital version of their private investment strategy to eligible investors. They’re doing this using technology from KAIO, a company specializing in tokenization based out of the UAE. It’s cool to see these traditional finance players stepping into the crypto space.
This funding source is accessible on the Coinbase Base network, as well as Solana and Sui. Companies involved report that it currently holds around $75 million worth of digital assets.
Coinbase is investing some of its own money into the fund, making it one of the first public cryptocurrency companies to do so with a tokenized private market offering. The exact amount of their investment hasn’t been revealed.
Mubadala Capital, managing over $430 billion in assets, is the latest major investment firm to explore blockchain technology for its funds. This joins a growing trend that includes companies like BlackRock, Franklin Templeton, Apollo, Fidelity, Janus Henderson, and Invesco, who are all launching or expanding offerings of tokenized funds – primarily focusing on investments such as U.S. Treasury bonds, money market accounts, and private credit.
Tokenization – turning real-world assets into digital tokens – is rapidly gaining popularity, especially as traditional financial companies update their systems. Experts predict significant growth in this area: Citi estimates tokenized securities could be worth around $5.5 trillion by 2030, and Boston Consulting Group and Ripple believe all types of tokenized assets could reach $18.9 trillion by 2033.
Turning traditional funds into blockchain tokens could attract more investors and allow those tokens to be used for things like securing loans or participating in other financial activities within the blockchain world.
In this instance, KAIO is the platform powering the creation and management of Mubadala Capital’s digital fund. Mubadala is joining other companies like Hamilton Lane, Brevan Howard, and Laser Digital who are using KAIO to offer investment products on the blockchain. Currently, KAIO has $144 million worth of tokenized funds available on its platform.
Mubadala Capital Solutions has developed a strategy focused on providing exclusive opportunities – including investment deals, co-investment possibilities, and a worldwide network typically unavailable to most investors. According to Max Franzetti, head of Mubadala Capital Solutions, expanding this approach using blockchain technology allows them to reach a broader group of qualified investors while maintaining their rigorous investment standards.
Brett Tejpaul, who leads Coinbase Institutional, explained that Coinbase’s decision to invest in the fund demonstrates increasing demand for officially regulated digital assets as part of company treasuries. He added that as these regulated assets gain the ability to be programmed, they can contribute to a more open, flexible, and accessible on-chain financial system for qualified investors where permitted.
This launch supports the UAE’s goal to become a leading center for tokenized finance. Both Abu Dhabi and Dubai are quickly becoming major players in the digital asset space, as regulators develop crypto rules and banks, government-backed investors, and financial companies increasingly explore things like tokenized funds, bonds, and stablecoins.
2026-07-23 15:09