Mubadala Capital, the asset management subsidiary of Abu Dhabi’s $385 billion sovereign wealth fund, has partnered with cryptocurrency exchange Coinbase and Abu Dhabi-based fintech company Kaio to launch a tokenized private market investment fund across public blockchain networks.
Coinbase joins launch as investor while Kaio provides tokenization infrastructure
The investment product is now operational on the Base, Solana, and Sui blockchains and has already attracted $75 million in commitments from investors, including Coinbase. The initiative marks one of the most prominent examples of a sovereign-backed asset manager adopting blockchain technology to broaden access to institutional investment strategies.
Mubadala Capital has launched a tokenized private market fund on the Base, Solana, and Sui blockchains, raising $75 million from investors, including Coinbase.
Expanding Access to Private Markets
The tokenized structure is designed to make an investment strategy that was previously reserved for a limited group of institutional investors available to a wider pool of qualified investors worldwide through regulated digital asset infrastructure.
Private market investments, including private equity, private credit, and other non-listed assets, have traditionally been accessible mainly to sovereign wealth funds, pension funds, endowments, and other large institutional investors. High minimum investment requirements, extensive documentation, and geographically limited distribution have historically restricted participation.
By representing fund interests as blockchain-based digital tokens, the structure is intended to simplify investment processes while improving transaction efficiency and reducing administrative costs. Tokenization also has the potential to enhance liquidity by allowing investors to transfer tokenized fund interests through blockchain-based secondary markets, reducing the lengthy legal and operational procedures typically associated with traditional fund transfers.
Industry interest in tokenized real-world assets has accelerated significantly. The market surpassed $30 billion in value during early 2026, reflecting rapid year-over-year growth as financial institutions increasingly explore blockchain-enabled investment products.
Institutional Adoption Gains Momentum
The launch is notable because it involves one of the world’s largest sovereign-backed investment organizations rather than an emerging blockchain company. Mubadala’s total assets increased 17% to $385 billion during 2025, while Mubadala Capital manages and administers more than $600 billion across private equity, venture capital, credit, and co-investment strategies.
Max Franzetti, Head of Mubadala Capital Solutions, explained that the firm’s investment strategy had historically relied on privileged access to investment opportunities, co-investments, and an extensive global network. He indicated that placing the strategy on blockchain infrastructure would enable a broader group of qualified investors to access those opportunities while maintaining the institutional investment standards that guide the firm’s portfolio management.
A distinguishing feature of the initiative is Coinbase’s decision to include exposure to the tokenized Mubadala investment strategy on its corporate balance sheet. The move represents a rare instance of a publicly traded U.S. company holding a sovereign-backed private market investment as part of its treasury assets.
Brett Tejpaul, Co-Chief Executive of Coinbase Institutional, stated that adding the tokenized Mubadala strategy to Coinbase’s balance sheet reflected the growing maturity of regulated real-world asset markets and demonstrated increasing institutional confidence in blockchain-based financial products.
Coinbase has added the tokenized Mubadala Capital investment strategy to its corporate balance sheet, underscoring growing institutional confidence in regulated blockchain-based assets.
Abu Dhabi Strengthens Digital Finance Ecosystem
The partnership also highlights Abu Dhabi’s expanding role in digital finance and institutional blockchain infrastructure. The emirate has increasingly focused on regulated digital asset markets, cryptocurrency custody services, and blockchain innovation through the Abu Dhabi Global Market (ADGM).
Kaio, the infrastructure provider supporting the tokenized fund, has previously deployed blockchain-based investment products for several global asset managers. The company currently supports approximately $150 million in tokenized assets across more than 10 blockchain networks.
The broader tokenized asset sector remains relatively small compared with global capital markets, but analysts expect substantial long-term expansion. Industry forecasts suggest tokenized real-world assets could grow into a multi-trillion-dollar market over the next decade as financial institutions increasingly adopt blockchain infrastructure for traditional investment products.
The collaboration reflects the accelerating adoption of blockchain technology by major financial institutions seeking to expand access, improve liquidity, and modernize private market investments through regulated tokenization.
The Mubadala initiative illustrates how sovereign-backed asset managers are moving beyond pilot programs and incorporating blockchain into established investment strategies, signaling continued convergence between traditional financial markets and digital asset infrastructure.
