• Mubadala Capital, managing over $430 billion, teams up with Kaio for onchain private market products.

• Kaio’s digital framework aims to simplify access for accredited investors, reducing traditional barriers like lockups.

• Tokenized real-world assets grew significantly in 2025, with onchain U.S. Treasurys rising from $3.9 billion to $8.6 billion, per CoinShares data.

Discover how Mubadala Capital’s partnership with Kaio advances tokenized RWAs in private markets. Explore benefits for investors and the future of blockchain in sovereign wealth. Stay informed on crypto innovations today.

What is Mubadala Capital’s partnership with Kaio?

Mubadala Capital’s partnership with Kaio focuses on testing tokenized access to private market investment strategies using blockchain technology. Abu Dhabi-based Mubadala Capital, a subsidiary of Mubadala Investment Company, collaborates with Kaio, an institutional real-world asset infrastructure provider, to evaluate how digital frameworks can enable onchain access for institutional and accredited investors. This initiative represents a strategic move toward digitizing alternative assets, potentially overcoming barriers such as high minimum investments and geographic restrictions.

How does tokenized access benefit private market strategies?

Tokenized access to private market strategies allows for fractional ownership and global distribution of assets that were previously illiquid or restricted. By leveraging blockchain, investors can participate in private equity, credit, and real estate opportunities without lengthy lockups or complex paperwork. According to industry reports, this approach could unlock trillions in value by enhancing liquidity and transparency. Experts note that tokenized real-world assets streamline compliance and reduce operational costs for asset managers. For instance, Kaio has already facilitated over $200 million in onchain institutional assets, demonstrating practical scalability. Supporting data from CoinShares indicates robust growth in the sector, with tokenized U.S. Treasurys doubling in market size during 2025 alone, driven by demand for secure, yield-bearing digital instruments.

The partnership underscores a broader trend where sovereign wealth funds integrate blockchain to modernize portfolio management. Mubadala Capital, overseeing more than $430 billion across diverse strategies, positions itself at the forefront of this evolution. Co-heads Fatima Al Noaimi and Max Franzetti emphasized the use of regulatory-aligned infrastructure to expand access to institutional-grade products. This aligns with global efforts to bridge traditional finance and decentralized technologies.

In the Middle East, Abu Dhabi’s investment ecosystem has shown increasing affinity for digital assets. Bloomberg reported on November 19 that the Abu Dhabi Investment Council, another Mubadala entity, holds at least $500 million in BlackRock’s spot Bitcoin ETF. Such exposures reflect confidence in crypto’s maturation as an asset class. Kaio CEO Shrey Rastogi stated, “This collaboration demonstrates how traditional institutional capital is now scaling onchain,” highlighting the shift toward tokenized vehicles in both public and private markets.

While the initiative is exploratory and no specific products are launching immediately, it signals intent to digitize fund structures. This could open channels for broader investor participation, particularly in regions underserved by conventional private markets. Infrastructure advancements, like Polygon’s recent hard fork to enhance performance for high-frequency applications including stablecoins and RWAs, further support this momentum.

Frequently Asked Questions

What are tokenized real-world assets in private markets?

Tokenized real-world assets represent physical or traditional financial assets, like private equity or real estate, converted into digital tokens on a blockchain. This process, as explored by Mubadala Capital and Kaio, improves accessibility, liquidity, and settlement speed for institutional investors, backed by regulatory frameworks to ensure security and compliance.

How will sovereign wealth funds like Mubadala adopt blockchain technologies?

Sovereign wealth funds are gradually integrating blockchain through partnerships and pilot programs to test tokenized assets. For Mubadala Capital, this means evaluating onchain distribution for private strategies, enhancing global reach while maintaining risk controls. The approach prioritizes regulatory alignment and aims to optimize returns in a digital economy.

Key Takeaways

• Mubadala Capital’s scale: Managing $430 billion, the firm leverages its expertise in alternatives to pioneer tokenized access via Kaio’s platform.
• RWA growth trajectory: Sector expansion, with onchain Treasurys hitting $8.6 billion in 2025, forecasts continued adoption into 2026 amid rising dollar yield demand.
• Institutional momentum: Collaborate with providers like Kaio to reduce barriers, encouraging more sovereign and private capital to enter blockchain ecosystems.

Conclusion

Mubadala Capital’s partnership with Kaio exemplifies the intersection of sovereign wealth management and tokenized real-world assets, promising enhanced efficiency in private market strategies. As institutional adoption accelerates, driven by proven infrastructure and regulatory progress, this collaboration could redefine access to alternative investments globally. Investors and asset managers alike should monitor these developments for opportunities in the evolving landscape of onchain finance.