Key Insights
- Mubadala Capital explores tokenized access to private markets with Kaio and expands its digital-asset strategy.
- The partnership illustrates an increasing institutional interest in RWAs.
- On-chain distribution testing by institutions expands access and efficiency in private investment.
Abu Dhabi-based Mubadala Capital has begun exploring tokenized access to private-market strategies through a new partnership with institutional RWA infrastructure provider Kaio.
The partnership marks a notable move by sovereign-linked capital into on-chain investment rails at a time when demand for blockchain-based financial instruments continues to rise.
Sovereign-Linked Capital Moves Toward Onchain Distribution
According to Tuesday’s announcement, the partnership centers on testing how Kaio’s infrastructure can deliver on-chain access to Mubadala Capital’s private equity, credit, real estate, and alternative strategies. The firm manages and advises on more than $430 billion and operates as a subsidiary of Mubadala Investment Company, one of Abu Dhabi’s major sovereign wealth funds.
Executives Fatima Al Noaimi and Max Franzetti stated that the goal is to work with compliant infrastructure to evaluate how tokenization can open structured vehicles to institutional and accredited investors, eliminating the traditional barriers of high minimums, restrictive lockups, and geographic limitations.
The group’s digital-asset footprint has grown steadily. In November, Bloomberg reported that Mubadala’s Abu Dhabi Investment Council subsidiary held at least $500 million in BlackRock’s spot Bitcoin ETF. The Kaio engagement places it among a growing set of sovereign-linked allocators examining blockchain distribution for alternative assets.
Market data shows rising demand for tokenized RWAs. CoinShares reported that tokenized U.S. Treasuries expanded from $3.9 billion to $8.6 billion in 2025 as global investors sought dollar-based yields. Meanwhile, according to the 2025 Skynet RWA Security Report, the market for tokenized RWAs is estimated to grow to $16 trillion by 2030.
The trend is projected to continue into 2026 as issuers and infrastructure providers strengthen distribution and compliance frameworks.
Moreover, the shift is also getting strengthened through network upgrades. On Wednesday, Polygon launched a hard fork to enhance the performance of high-frequency functions such as stablecoins and tokenized RWAs, indicating increased technical preparations to accept larger capital flows.
Onchain Access Emerges as a Strategic Priority
Mubadala’s move aligns with a broader institutional review of how tokenized structures may streamline fund operations, reduce intermediaries, and widen access to global investors.
Furthermore, by engaging in a controlled pilot, the company joins a cohort of funds, asset managers, and infrastructure operators testing whether blockchain distribution can improve efficiency across private market strategies.
