Mubadala Capital Explores On-chain Private Markets With Kaio
- Mubadala Capital and Kaio begin study on tokenized access to private market strategies.
- Assessment phase only, with no product launch, named fund, or rollout timeline disclosed.
- Kaio cites over $200 million on-chain as tokenized U.S. Treasurys expand in 2025.
Mubadala Capital, based in Abu Dhabi, has started a tokenization study with Kaio, a provider of real-world asset infrastructure. The update was announced on Tuesday. The study would look at whether Kaio’s on-chain framework could support access to Mubadala Capital’s private market strategies. The target users are institutional and accredited investors. No product was launched with the announcement.
The companies described the work as an assessment phase. The effort focuses on infrastructure and distribution, not fundraising. The announcement did not name a fund, a vehicle, or a launch window. It also did not state where any tokenized interests might be issued.
Digital Rails Target Private Markets With High Barriers
The stated aim is to test “digital rails” for private market exposure. Private assets often come with high entry thresholds. Lockups could run for years. Processes could also be complex across borders. The announcement framed tokenization as a way to evaluate a different access route.
Mubadala Capital said it manages, advises, and administers more than $430 billion in assets. The firm said coverage includes private equity, credit, real estate, and other alternative strategies. Mubadala Capital operates under Mubadala Investment Company. Mubadala Investment Company is linked to the government of Abu Dhabi.
The statement included comments from Mubadala Capital Solutions leadership. Fatima Al Noaimi and Max Franzetti, co-heads of the unit, said the goal is to use regulatory-aligned infrastructure. The pair said the study would test whether digital rails could broaden access to institutional-grade products.
Kaio presented its role as an institutional tokenization layer. The company said it has supported tokenized feeder structures for asset managers. Kaio cited BlackRock, Brevan Howard, and Hamilton Lane among past names. Kaio also said more than $200 million in institutional assets have been brought on-chain through its work.
Tokenized RWAs Grow as Institutions Scale On-chain
Kaio said the collaboration reflects rising demand for tokenized investment vehicles. The company linked that demand to public and private market products. Kaio CEO Shrey Rastogi said the move shows institutional capital scaling on-chain.
The move comes as tokenized real-world assets grow as a sector. Tokenized U.S. Treasuries have been one of the largest categories on-chain. Digital asset investment company CoinShares has reported strong RWA growth in 2025, led by Treasury products. The firm has linked the trend to demand for dollar yields.
Related: CZ Eyes AI, DeFi, and RWAs Powering BNB Chain’s Next Growth Wave
CoinShares said on-chain Treasurys increased from $3.9 billion to $8.6 billion in 2025. The firm said the trend could extend through 2026. CoinShares cited continuing global demand for yield on dollar assets. The report did not connect those figures to Mubadala Capital.
Separate reporting has also pointed to Abu Dhabi-linked exposure to crypto markets. In November, reports say that the Abu Dhabi Investment Council held at least $500 million in BlackRock’s spot Bitcoin ETF. Bloomberg described the council as a Mubadala subsidiary.
Infrastructure upgrades are also being positioned for tokenized finance activity. Networks are working to support higher transaction volumes and faster confirmation. These conditions matter for stablecoins and for tokenized RWAs.
Polygon deployed a hard fork today to reinforce infrastructure and improve performance. The update was presented as relevant for higher-frequency use cases. Stablecoins and RWA tokenization were cited as examples. The change was separate from the Mubadala Capital and Kaio collaboration.
Mubadala Capital and Kaio did not disclose a timeline for releasing findings from the assessment. The announcement made no launch commitment. The effort is focused on testing on-chain access and infrastructure. More details are needed to confirm any tokenized product.
