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- Mubadala Capital partners with Kaio to explore tokenized access to private market assets.
- Tokenization aims to overcome barriers like high investments, lockups, and geographic limits.
- Demand for tokenized RWAs is rising, with infrastructure providers enhancing blockchain performance.
Mubadala Capital, based in Abu Dhabi, has partnered with Kaio to explore tokenized access to private market investment strategies. This collaboration signals growing interest from sovereign wealth funds in blockchain technology. The initiative aims to provide institutional investors with on-chain access to Mubadala’s private equity, credit, and real estate products.
The companies announced the partnership on Tuesday, emphasizing the value of Kaio’s digital infrastructure for enabling institutional and accredited investors to access private market products.
Tokenizing these assets can overcome traditional barriers like high minimum investments, long lockup periods, and geographic restrictions. Through blockchain, Mubadala Capital aims to broaden the distribution of its alternative assets.
Mubadala Capital’s Push for Digital Market Access
The collaboration is a step towards digitizing fund structures, even though Mubadala Capital hasn’t launched any new products yet. Mubadala Capital, managing over $430 billion in assets, seeks to expand its reach globally. The company is a subsidiary of Mubadala Investment Company, one of Abu Dhabi’s sovereign wealth funds.
The collaboration is consistent with the overall strategy of Mubadala Capital to capture the digital asset landscape. Another Mubadala subsidiary, the Abu Dhabi Investment Council (ADIC), reported investing $500 million into BlackRock, a Bitcoin exchange-traded fund (ETF), in November. This shows that Mubadala continues to be interested in digital assets and blockchain technology.
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Mubadala Capital Solutions co-heads Fatima Al Noaimi and Max Franzetti stated that they intend to use Kaio as the testing ground to determine how tokenization can open more institutional-grade products. Kaio has been involved in asset structure tokenization with large companies such as BlackRock and Brevan Howard, bringing more than $200 million of institutional assets on-chain.
The CEO of Kaio, Shrey Rastogi, said that this partnership represents the impetus that has been developing in the tokenization of investment vehicles. He highlighted the fact that tokenization enables conventional institutional capital to scale over blockchain networks.
Tokenized RWAs Drive Market Expansion and Increased Demand
This collaboration is related to a more general trend where institutions consider tokenization to streamline their operations, lessen friction, and get more involved in the market.
Expansion of tokenized RWAs is already being witnessed. The digital investment company CoinShares reported that, in 2025, tokenized US Treasuries had increased from $3.9 to $8.6 billion. The company estimates that the demand for the tokenized RWA will also increase, as the world needs the dollar’s yield.
The rising popularity of tokenized RWAs is also making infrastructure providers ready for the growing demand. Recently, Polygon implemented a hard fork to increase the performance of its network. The upgrade should enable high-frequency applications, including stablecoin and RWA tokenization, which will put blockchain technology in the position to grow in the future.
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