The race to bring traditional finance on-chain continues to accelerate after Mubadala Capital, the asset management arm of Abu Dhabi’s sovereign wealth ecosystem, announced the tokenization of one of its private markets funds. The initiative is being powered by KAIO, a UAE-based tokenization platform, while Coinbase Asset Management has joined the fund as an investor, signaling growing institutional confidence in blockchain-based investment infrastructure.
The fund will be issued across Base, Solana, and Sui, allowing qualified investors to access tokenized private market assets through blockchain networks instead of traditional fund administration systems. The move represents another milestone in the global tokenization trend as some of the world’s largest financial institutions increasingly embrace blockchain technology to modernize capital markets.
Mubadala Capital Brings Private Markets On-Chain
Mubadala Capital oversees tens of billions of dollars in assets across private equity, venture capital, real estate, and alternative investments. By tokenizing one of its private market funds, the firm aims to improve operational efficiency while expanding investor access through digital infrastructure.
The tokenized fund will leverage KAIO’s blockchain platform, enabling ownership interests to be represented as digital tokens. Rather than relying on paper-based processes and lengthy settlement periods, eligible investors can access fund shares through blockchain technology while maintaining compliance with existing financial regulations.
Coinbase Takes Strategic Stake
Adding further credibility to the initiative, Coinbase Asset Management has taken an investment position in the tokenized fund.
The participation highlights Coinbase’s broader strategy of supporting institutional adoption of tokenized real-world assets (RWAs). Instead of simply providing trading infrastructure, the company continues expanding into digital asset management and on-chain financial products as demand from institutional investors grows.
Why Three Blockchains?
Unlike many tokenization projects that launch on a single blockchain, Mubadala’s fund will operate across Base, Solana, and Sui.
Each network offers unique advantages:
- Base provides direct integration with Coinbase’s growing institutional ecosystem.
- Solana delivers high-speed, low-cost transactions for scalable financial applications.
- Sui offers an object-based architecture designed for digital asset ownership and programmable financial products.
By adopting a multi-chain approach, the fund can reach a broader institutional investor base while reducing dependence on any single blockchain ecosystem.
Tokenization Momentum Continues to Build
The announcement comes amid rapid institutional expansion into tokenized assets.
Over the past year, major financial firms have launched blockchain-based products covering:
- Private credit.
- Money market funds.
- Treasury products.
- Equities.
- Real estate.
- Alternative investments.
Industry analysts increasingly view tokenization as one of blockchain’s largest long-term opportunities because it enables traditional financial assets to settle faster, operate around the clock, and become more programmable.
The UAE Strengthens Its Position as a Digital Asset Hub
The project also reinforces the United Arab Emirates’ emergence as one of the world’s leading jurisdictions for blockchain innovation.
Abu Dhabi has actively supported digital asset infrastructure through regulatory frameworks, sovereign investment initiatives, and partnerships with blockchain companies. Earlier this year, KAIO raised funding backed by Tether to expand its institutional tokenization platform, laying the groundwork for projects such as the Mubadala partnership.
