Abu Dhabi's Mubadala Capital has moved into the tokenization arena, working with platform KAIO to bring one of its private market funds onchain, while Coinbase has taken a stake in the newly digitized fund.
A Sovereign-Backed Push Into Tokenized Assets
Mubadala Capital, the asset management arm connected to Abu Dhabi's sovereign wealth ecosystem, is the latest major institutional player to embrace blockchain-based finance. The firm partnered with KAIO to convert one of its private market funds into a tokenized product accessible across multiple blockchain networks.
The tokenized fund is being deployed on Base, Solana and Sui, giving investors exposure across some of the most active chains in the industry. By spreading the offering across several networks, the initiative aims to broaden reach and improve accessibility for a wider pool of potential participants.
When a sovereign-backed manager puts private markets onchain, tokenization stops being a pilot project and starts looking like infrastructure.
Coinbase Signals Confidence With a Stake
Adding weight to the launch, Coinbase has taken an equity position in the onchain fund. The involvement of one of the largest publicly traded crypto exchanges lends institutional credibility to the effort and underscores growing appetite among established players to participate in tokenized private markets.
Tokenization has emerged as one of the most closely watched trends in digital assets, with firms racing to represent traditional financial instruments—ranging from private equity to real estate and treasuries—as blockchain-based tokens. Proponents argue the technology can unlock liquidity, reduce settlement friction and open historically exclusive asset classes to a broader base of investors.
Key elements of the initiative include:
- A private market fund from Mubadala Capital brought onchain via KAIO
- Multi-chain deployment spanning Base, Solana and Sui
- A direct equity stake taken by Coinbase in the fund
The move reflects a wider shift in which sovereign-linked institutions and major exchanges are increasingly converging on tokenization as a practical tool rather than a speculative experiment. As more traditional capital flows into onchain structures, the line between conventional finance and blockchain-native products continues to blur.