Mubadala Capital, Kaio pilot tokenized private market access
Abu Dhabi-based Mubadala Capital has partnered with institutional real-world asset (RWA) infrastructure provider Kaio to evaluate tokenized access to private market investment strategies, indicating growing sovereign-linked interest in onchain RWAs.
The firms said on Tuesday that the initiative will examine how Kaio’s digital framework could allow institutional and accredited investors to access Mubadala Capital’s private market products onchain.
The effort focuses on using RWA tokenization as a technological upgrade and distribution channel for alternative assets that traditionally feature high minimum investments, multi-year lockups, and geographic restrictions.
No product has been launched at this stage. The collaboration is intended to test the digitization of fund structures and potentially broaden global distribution for one of the region’s largest asset managers.
Sovereign-linked asset manager moves into RWAs
Mubadala Capital manages, advises, and administers over $430 billion across private equity, credit, real estate, and alternative strategies through its asset managers and investment platforms. It is a subsidiary of Mubadala Investment Company, one of Abu Dhabi’s sovereign wealth funds. On Nov. 19, Bloomberg reported that the Abu Dhabi Investment Council (ADIC), another Mubadala subsidiary, held at least $500 million in BlackRock’s spot Bitcoin exchange-traded fund (ETF).
Fatima Al Noaimi and Max Franzetti, co-heads of Mubadala Capital Solutions, said the objective is to use regulatory-aligned infrastructure to test how digital rails can expand access to institutional-grade products.
Kaio, which has supported tokenized feeder structures for asset managers including BlackRock, Brevan Howard, and Hamilton Lane, has brought over $200 million in institutional assets onchain. The company said its collaboration with Mubadala reflects accelerating adoption of tokenized investment vehicles across public and private markets. Kaio CEO Shrey Rastogi said the initiative illustrates that traditional institutional capital is scaling onchain.
Tokenized RWAs expected to sustain momentum into 2026
By engaging with tokenization infrastructure, the company joins a broader set of institutional participants assessing whether onchain mechanisms can streamline processes, reduce friction, and ultimately increase participation.
Digital asset investment firm CoinShares reported that RWAs experienced strong growth in 2025, led by tokenized U.S. Treasurys. According to the report, onchain Treasurys rose from $3.9 billion to $8.6 billion this year.
CoinShares expects this trend to continue through 2026 amid persistent global demand for dollar-denominated yields.
Infrastructure providers are also preparing for increased activity in tokenized RWAs. On Wednesday, Polygon executed a hard fork designed to strengthen its infrastructure and enhance performance, a step positioned to support high-frequency use cases such as stablecoins and RWA tokenization.
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