Mubadala Capital Partners with Kaio to Tokenize Private Markets

Strategic Partnership to Unlock Tokenized Private Assets

Abu Dhabi-based Mubadala Capital announced on December 10, 2025, that it has entered into a strategic collaboration with Kaio, a prominent real-world asset (RWA) tokenization infrastructure provider. Mubadala intends to leverage Kaio’s blockchain platform to explore the digital tokenization of its private market assets.

This initiative reflects a broader ambition of Mubadala to innovate the accessibility of traditionally illiquid asset classes such as private equity, credit, and real estate. By using blockchain technology, Mubadala hopes to overcome existing barriers like high minimum investment thresholds, long lockup periods, and geographic restrictions, opening pathways for broader institutional participation.

Fatima Al Noaimi and Max Franzetti, co-heads of Mubadala Capital Solutions, emphasized: "By leveraging regulatory-aligned digital infrastructure, we can expand access to institutional-grade products and offer greater flexibility and transparency in alternative asset investing."

Kaio CEO Shrey Rastogi added: "Our partnership with Mubadala symbolizes accelerating institutional adoption of tokenized investment vehicles, signaling blockchain’s growing role in streamlining fund structures and global investment access."

By the Numbers: Mubadala Capital and Kaio’s Institutional Scale

Metric	Value	Context
Total Assets Under Management	$430 billion	Across private equity, credit, real estate sectors
Institutional Assets On-Chain	$200+ million (via Kaio)	Kaio’s tokenized assets for global asset managers
BlackRock Bitcoin ETF Holdings	$500 million (by ADIC)	Mubadala affiliate investment in digital assets

These figures underscore Mubadala’s significant scale and the credibility of blockchain integration given Kaio’s track record supporting institutional asset tokenization for players like BlackRock, Brevan Howard, and Hamilton Lane.

What is Tokenization of Private Markets?

Tokenization refers to converting ownership rights of real-world assets into digital tokens on a blockchain. For private markets, this means transforming private equity stakes, credit funds, or real estate shares into cryptographically secured tokens.

This blockchain-based approach offers benefits including:

• Fractional ownership—allowing smaller investment sizes
• Enhanced liquidity—by facilitating secondary market trading
• Increased transparency—through immutable blockchain records
• Global accessibility—cross-border transactions without traditional bottlenecks

Mubadala’s move indicates a growing acceptance of tokenized real-world assets to democratize access to alternative investments historically limited to select institutional or accredited investors.

Institutional Adoption of Blockchain in Sovereign Wealth Funds

Mubadala Capital is a subsidiary of Mubadala Investment Company, a major Abu Dhabi sovereign wealth fund. The group’s growing interest in blockchain reflects a wider trend among sovereign and institutional investors to integrate digital assets and infrastructure in their portfolios.

In November 2025, Bloomberg reported the Abu Dhabi Investment Council (another Mubadala entity) held at least $500 million exposure to a BlackRock spot Bitcoin ETF, signaling a willingness to embrace crypto assets at an official sovereign investment level.

Mubadala’s partnership with Kaio expands this narrative by targeting not only public digital assets but also digitizing private market investments, blending traditional finance with decentralized tech.

Broader Crypto Trend: Growth of Tokenized RWAs

The adoption of tokenized real-world assets is gaining rapid momentum across global financial markets. CoinShares’ market outlook highlighted a near doubling of tokenized US Treasurys from $3.9 billion to $8.6 billion in 2025, with further growth expected through 2026 given persistent demand for yield and operational efficiencies.

Supporting infrastructure is advancing concurrently. Polygon recently deployed a hard fork to improve network throughput and latency, critical for high-frequency applications like stablecoins and RWA tokens.

This growth trajectory indicates institutional appetite is expanding beyond cryptocurrencies into tokenized securities and alternative assets, merging DeFi protocols and traditional asset investment.

Challenges and Regulatory Considerations

While tokenization offers compelling advantages, challenges remain such as regulatory alignment, custodial risks, and integration of digital assets into existing legal frameworks. Mubadala’s emphasis on "regulatory-aligned digital infrastructure" highlights awareness of the careful balance needed to comply with jurisdictional standards.

Institutional investors require clear governance, security, and transparency to adopt tokenized funds. The partnership with Kaio aims to address these through robust technology and compliance mechanisms.

Final Takeaway

Mubadala Capital’s strategic partnership with Kaio to explore tokenization of private market assets marks a significant step in bridging traditional sovereign wealth fund investment strategies with blockchain-powered innovation. With over $430 billion in assets under management and growing institutional interest in digital solutions, Mubadala is positioning itself at the forefront of transforming private equity and alternative asset investing.

This collaboration reflects the accelerating adoption of real-world asset tokenization infrastructure by leading global players, aiming to improve liquidity, broaden investor access, and build a more transparent, efficient financial ecosystem. As regulatory frameworks evolve and technology matures, tokenized private markets could become a foundational pillar in the future of institutional investing.