Mubadala Capital from Abu Dhabi Invests in Tokenized Private Market Access

Mubadala Capital, based in Abu Dhabi, has teamed up with Kaio, a provider of real-world asset (RWA) infrastructure, to investigate tokenized entry into private market investment strategies. This partnership signifies a move towards utilizing blockchain technology by sovereign-linked capital.

Key Takeaways

Mubadala Capital and Kaio are collaborating to explore tokenized access to private market investments.
This initiative aims to reduce investment barriers, enhancing access for institutional investors.
Mubadala Capital manages over $430 billion in various asset categories and is linked to Abu Dhabi's sovereign wealth fund.
The interest in RWAs is expected to grow, with predictions of continuing momentum into 2026.
Infrastructure improvements, like those from Polygon, support the development of tokenized assets.

Mubadala Capital and tokenized private market access

On Tuesday, both companies announced their initiative to evaluate how Kaio’s digital solutions can provide institutional and accredited investors with onchain access to Mubadala Capital’s private market offerings. This effort demonstrates an interest in RWA tokenization as a technological advancement and a means to distribute alternative assets that previously had high barriers to entry, such as significant minimum investments, long lock-up periods, and geographic constraints.

While no new products are being introduced just yet, this collaboration represents progress towards digitizing fund structures and potentially creating channels for global access to one of the largest asset managers in the region.

Mubadala Capital and Real-World Assets

Mubadala Capital oversees, advises, and manages assets exceeding $430 billion across various sectors such as private equity, credit, real estate, and alternative strategies through its investment platforms and asset managers. It operates under Mubadala Investment Company, one of Abu Dhabi’s sovereign wealth funds.

In a recent Bloomberg report dated November 19, it was revealed that the Abu Dhabi Investment Council (ADIC), which is a subsidiary of Mubadala, invested at least $500 million into BlackRock’s spot Bitcoin exchange-traded fund (ETF).

Fatima Al Noaimi and Max Franzetti, co-heads of Mubadala Capital Solutions, expressed in their announcement that their objective is to utilize regulatory-compliant infrastructure to explore how digital mechanisms can expand access to institutional-quality products. Kaio, which has already facilitated tokenized feeder structures for asset managers including BlackRock, Brevan Howard, and Hamilton Lane, has successfully brought over $200 million in institutional assets onto blockchain.

Kaio believes that this collaboration with Mubadala signifies significant progress towards the development of tokenized investment options in both public and private markets. Kaio’s CEO, Shrey Rastogi, commented, “This launch demonstrates how traditional institutional capital is now scaling onchain."

Cointelegraph attempted to contact Kaio for further details but received no response by the time of publication.

Related: Tether’s USDt Recognized with Important Regulatory Status in Abu Dhabi

The Future of Tokenized RWAs

By engaging with tokenization infrastructure, Mubadala is joining a growing number of institutional players investigating whether onchain solutions can streamline processes, decrease barriers, and ultimately broaden participation. Digital asset investment firm CoinShares recently reported that RWAs experienced notable growth in 2025, primarily driven by tokenized US Treasurys. The report indicated that onchain Treasurys grew from $3.9 billion to $8.6 billion this year.

This trend is expected to persist through 2026 as global demand for dollar yields continues to increase. In addition to asset managers, infrastructure providers are preparing for an anticipated rise in tokenized RWAs.

On Wednesday, Polygon executed a hard fork aimed at strengthening its infrastructure and enhancing performance. This strategy appears to be a necessary step for supporting high-frequency use cases, including stablecoin and RWA tokenization.

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