Abu Dhabi's Mubadala Capital joins tokenization push as Coinbase takes stake in onchain fund

Abu Dhabi's Mubadala Capital joins tokenization push as Coinbase takes stake in onchain fundThe sovereign wealth-backed asset manager tapped KAIO to bring one of its private market funds onchain across Base, Solana and Sui networks.Abu Dhabi skyline (Shutterstock)Mubadala Capital has launched a tokenized version of one of its private markets strategies for qualified investors, using infrastructure from UAE-based tokenization firm KAIO.The fund, available on Coinbase’s Base network, Solana and Sui, has already attracted about $75 million in onchain assets, and Coinbase is taking exposure to it on its own balance sheet.Mubadala’s move adds to a growing wave of major asset managers embracing tokenized funds, as Wall Street projects trillions of dollars in tokenized securities and the UAE positions itself as a hub for tokenized finance.Mubadala Capital has brought one of its private markets investment funds onchain, making the asset management arm of Abu Dhabi's sovereign wealth fund one of the latest major financial firms to embrace tokenization.The alternative asset manager, which oversees about $430 billion in assets, said Thursday it launched a tokenized version of one of its private markets strategies for qualified investors using infrastructure from KAIO, a UAE-based tokenization specialist.The fund is available on Coinbase's Base network, Solana and Sui and has already attracted about $75 million in onchain assets, according to the companies.Coinbase (COIN) is also taking exposure to the fund on its own balance sheet, an early example of a publicly traded crypto company investing in a tokenized private markets product. The companies didn't disclose the size of the investment.The move adds Mubadala Capital, which administers over $430 billion in assets, to a growing list of major investment firms putting funds on blockchain rails. BlackRock, Franklin Templeton, Apollo, Fidelity, Janus Henderson and most recently Invesco have all launched or expanded tokenized fund offerings, mostly focused on U.S. Treasuries, money market funds and private credit.Tokenization has become one of the fastest-growing corners of digital assets as traditional finance firms look to modernize fund infrastructure. Citi recently projected that tokenized securities could grow to roughly $5.5 trillion by 2030, while Boston Consulting Group and Ripple estimate tokenized assets across all asset classes could reach $18.9 trillion by 2033.Creating blockchain-based tokens of existing funds could help broaden access to a new set of investors and open the door for fund shares to be used as collateral or plugged into other onchain financial applications.For this particular case, KAIO provides the infrastructure that issues and administers Mubadala Capital’s tokenized fund. The company said Mubadala joins firms including Hamilton Lane, Brevan Howard and Laser Digital that use its platform to distribute investment products onchain, and currently has $144 million in tokenized funds on its platform.“This strategy was built on differentiated access — to deal flow, to co-investment, to a global network that most investors cannot reach on their own," Max Franzetti, head of Mubadala Capital Solutions, said in a statement. “Bringing it onchain extends that access to a new class of qualified investors without compromising the institutional discipline that defines how we invest.”Brett Tejpaul, head of Coinbase Institutional, said that Coinbase adding the fund to its corporate balance sheet investment is a reflection of growing interest in regulated tokenized assets as treasury holdings. “As regulated assets become programmable, they can become part of a broader onchain economy that is more transparent, composable and accessible to qualified investors in eligible jurisdictions.”The launch also fits into the UAE's broader ambition to become a hub for tokenized finance. Abu Dhabi and Dubai have emerged as some of the most active jurisdictions for digital assets, with regulators rolling out crypto frameworks while banks, sovereign-backed investors and financial firms increasingly experiment with tokenized funds, bonds and stablecoins.12345678910Crypto Flows, Share and the Selective RotationCrypto Flows, Share and the Selective RotationMarkets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.Why it matters:Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.View Full Report