Abu Dhabi’s Mubadala Capital has entered a collaboration with institutional RWA infrastructure provider Kaio to study how digital rails can support tokenized access to private market strategies.
Key Takeaways:
- Mubadala Capital is exploring tokenized private market access with Kaio.
- The partnership reflects rising institutional interest in RWAs.
- Tokenized assets continue gaining momentum as infrastructure improves.
Announced Tuesday, the partnership will focus on testing how Kaio’s framework could allow institutional and accredited investors to access Mubadala Capital’s private market products onchain.
While the work remains exploratory, it reflects growing interest in using RWA tokenization to modernize fund structures traditionally restricted by steep minimums, long lockups and jurisdictional limits.
Mubadala Capital Manages $430B Across Global Markets
Mubadala Capital oversees and advises on more than $430 billion across private equity, credit, real estate and alternative strategies.
It operates as a subsidiary of Mubadala Investment Company, one of Abu Dhabi’s major sovereign wealth funds.
The group’s broader digital-asset positioning has drawn attention recently. In November, Bloomberg reported that the Abu Dhabi Investment Council, another Mubadala subsidiary, held at least $500 million in BlackRock’s spot Bitcoin ETF.
In Tuesday’s announcement, Fatima Al Noaimi and Max Franzetti, co-heads of Mubadala Capital Solutions, said the goal is to work with regulatory-aligned infrastructure to understand how tokenization can broaden access to institutional-grade vehicles.
Kaio brings prior experience in the sector, having helped structure tokenized feeder funds for firms such as BlackRock, Brevan Howard and Hamilton Lane.
The company has moved more than $200 million in institutional assets onchain and says the Mubadala initiative underscores momentum behind onchain investment products.
“This launch demonstrates how traditional institutional capital is now scaling onchain,” Kaio CEO Shrey Rastogi said.
The move places Mubadala among a growing cohort of institutional players studying whether tokenized mechanisms can cut operational friction and eventually expand global participation.
CoinShares data shows strong demand for RWAs in 2025, particularly tokenized US Treasurys, which grew from $3.9 billion to $8.6 billion this year. The firm expects the trend to continue into 2026 as appetite for dollar-based yields remains elevated.
Infrastructure is also evolving to support the shift. On Wednesday, Polygon deployed a hard fork aimed at strengthening performance for high-frequency applications such as stablecoins and tokenized RWAs.
RWA Tokenization Gains Momentum
On Monday, Libeara, the blockchain infrastructure platform backed by Standard Chartered’s venture arm SC Ventures, rolled out a new tokenized gold investment fund in Singapore, bringing one of the world’s oldest safe-haven assets onto digital rails.
The fund, launched in partnership with FundBridge Capital, allows professional investors to gain exposure to gold through blockchain-based tokens issued on Libeara’s ledger.
In a recent research, Web3 digital property firm Animoca Brands said that tokenization of RWAs could unlock a $400 trillion traditional finance market.
Animoca researchers Andrew Ho and Ming Ruan said the global market for private credit, treasury debt, commodities, stocks, alternative funds, and bonds represents a vast runway for growth.
“The estimated $400 trillion addressable TradFi market underscores the potential growth runway for RWA tokenization,” they wrote.
Meanwhile, according to the 2025 Skynet RWA Security Report, the market for tokenized RWAs could grow to $16 trillion by 2030.
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