Mubadala Capital Embraces Tokenization as Coinbase Invests in Onchain Fund

Abu Dhabi's Mubadala Capital has initiated a tokenized version of one of its private market funds, marking a significant step for the asset management firm backed by sovereign wealth.

The asset manager partnered with KAIO to transition its private market fund to onchain across Base, Solana, and Sui networks.

By Krisztian Sandor| Edited by Stephen Alpher Jul 23, 2026, 12:00 p.m. 2 min read

• Mubadala Capital has introduced a tokenized version of one of its private market strategies for qualified investors, utilizing the infrastructure of UAE-based tokenization firm KAIO.
• The fund, which is accessible on Coinbase’s Base network, Solana, and Sui, has already secured approximately $75 million in onchain assets, with Coinbase also taking a position on its balance sheet.
• This initiative contributes to a growing trend among major asset managers adopting tokenized funds, as projections suggest trillions of dollars in tokenized securities, positioning the UAE as a center for tokenized finance.

On Thursday, Mubadala Capital announced that it has transitioned one of its private markets investment funds to onchain, making it one of the recent significant financial institutions to adopt tokenization.

The alternative asset manager, which manages around $430 billion in assets, revealed it has launched a tokenized version of a private markets strategy for qualified investors, leveraging infrastructure from KAIO, a specialist in tokenization based in the UAE.

This new fund is available on Coinbase's Base network, as well as Solana and Sui, and has already attracted about $75 million in onchain assets, according to the involved companies.

Coinbase (COIN) is also taking on exposure to this fund in its own balance sheet, marking an early instance of a publicly traded cryptocurrency company investing in a tokenized private markets product. However, the companies did not disclose the exact investment amount.

This move integrates Mubadala Capital, which manages over $430 billion in assets, into an expanding roster of prominent investment firms that are placing funds on blockchain technology. Firms such as BlackRock, Franklin Templeton, Apollo, Fidelity, Janus Henderson, and most recently, Invesco have all initiated or expanded their tokenized fund offerings, primarily focusing on U.S. Treasuries, money market funds, and private credit.

Tokenization is emerging as one of the fastest-growing segments within digital assets as traditional finance institutions aim to modernize their fund infrastructure. Citi has projected that tokenized securities could escalate to about $5.5 trillion by 2030, while Boston Consulting Group and Ripple foresee that tokenized assets across various asset classes could reach $18.9 trillion by 2033.

The creation of blockchain-based tokens for existing funds could enhance access for a broader range of investors and allow fund shares to be utilized as collateral or incorporated into other onchain financial applications.

In this instance, KAIO supplies the infrastructure necessary for issuing and managing Mubadala Capital’s tokenized fund. The company noted that Mubadala joins other firms like Hamilton Lane, Brevan Howard, and Laser Digital, which utilize its platform to distribute investment products onchain, currently managing $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," stated Max Franzetti, head of Mubadala Capital Solutions. “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, indicated that Coinbase's addition of the fund to its corporate balance sheet reflects the increasing interest in regulated tokenized assets as treasury holdings. “As regulated assets become programmable, they can integrate into a broader onchain economy that is more transparent, composable, and accessible to qualified investors in eligible jurisdictions.”

This launch also aligns with the UAE's broader goal of becoming a center for tokenized finance. Abu Dhabi and Dubai have emerged as leading jurisdictions for digital assets, with regulators developing crypto frameworks while banks, sovereign-backed investors, and financial institutions increasingly explore tokenized funds, bonds, and stablecoins.