Mubadala Capital Joins Forces with Kaio to Investigate On-Chain RWAs

Abu Dhabi’s Mubadala Capital has teamed up with Kaio, a provider of RWA infrastructure, to explore using digital technology for tokenized access to private market strategies. This partnership showcases the increasing interest from institutions in Real-World Assets (RWAs) through innovative tokenization methods.

Key Takeaways:

Mubadala Capital is collaborating with Kaio to study tokenized access to private markets.
This partnership highlights the growing institutional interest in RWA tokenization.
The infrastructure needed for tokenized assets is continuously improving.

Announced on Tuesday, this new partnership will assess how Kaio’s technology can enable institutional and accredited investors to access Mubadala Capital’s private market offerings on-chain.

While this venture is still in the exploratory phase, it signifies a burgeoning interest in utilizing RWA tokenization to innovate fund structures, which have traditionally been limited by high minimum investments, long investment periods, and geographical barriers.

Mubadala Capital Partners With Kaio to Explore On-Chain RWAs

Mubadala Capital: Managing $430 Billion Globally

Mubadala Capital manages over $430 billion in various assets, including private equity, credit, real estate, and alternative investments. The company is a subsidiary of Mubadala Investment Company, one of the distinguished sovereign wealth funds in Abu Dhabi.

Recently, the group's strategic focus on digital assets has attracted significant attention. In November, it was reported by Bloomberg that the Abu Dhabi Investment Council, another arm of Mubadala, held an investment of at least $500 million in BlackRock’s spot Bitcoin ETF.

In their announcement, Mubadala Capital Solutions co-heads Fatima Al Noaimi and Max Franzetti expressed that their aim is to utilize regulatory-compliant infrastructure to gain insights on how tokenization can enhance access to high-quality institutional investments.

Kaio's Experience in Tokenization

Kaio possesses significant experience in the sector, having previously structured tokenized feeder funds for prominent firms such as BlackRock, Brevan Howard, and Hamilton Lane. The company claims to have successfully moved over $200 million in institutional assets on-chain, and this Mubadala initiative highlights the momentum surrounding on-chain investment products.

“This launch illustrates how traditional institutional capital is increasingly transitioning to on-chain solutions,” stated Kaio's CEO, Shrey Rastogi. This move positions Mubadala alongside a growing number of institutional entities examining whether tokenized methods can reduce operational challenges and broaden global investment participation.

Increasing Demand for RWAs

According to data from CoinShares, there is significant demand for RWAs in 2025, particularly concerning tokenized US Treasuries, which have seen an increase from $3.9 billion to $8.6 billion this year. The firm anticipates that this trend will persist into 2026, driven by continued interest in dollar-based yields.

Additionally, infrastructure supporting this shift is advancing. Recently, Polygon introduced a hard fork to enhance performance for high-frequency applications, including stablecoins and tokenized RWAs.

The Growing Trend of RWA Tokenization

On Monday, Libeara, a blockchain infrastructure platform backed by Standard Chartered’s SC Ventures, launched a new tokenized gold investment fund in Singapore. This fund, created in collaboration with FundBridge Capital, enables professional investors to engage with gold through blockchain-based tokens issued on Libeara’s ledger.

A recent study by Web3 digital property firm Animoca Brands indicates that the tokenization of RWAs could unlock a staggering $400 trillion market in traditional finance. Animoca's researchers, Andrew Ho and Ming Ruan, noted that the global market for private credit, treasury debt, commodities, stocks, alternative funds, and bonds represents substantial growth potential.

“The estimated $400 trillion addressable TradFi market highlights the significant opportunity for RWA tokenization,” they remarked. Furthermore, according to the 2025 Skynet RWA Security Report, the market for tokenized RWAs is projected to reach $16 trillion by 2030.