The tokenization of real-world assets is extending from brokerages and trading platforms to sovereign capital. Abu Dhabi-based Mubadala Capital announced a partnership with Coinbase and infrastructure provider KAIO to turn its evergreen private market fund into a compliant token for distribution to accredited investors.
Coinbase will buy the token
In this partnership, Coinbase will not only provide an on-chain distribution network but will also directly purchase the token. According to the partner, this means that Coinbase will include Mubadala's fund shares in its own balance sheet for native on-chain asset allocation.
The token will run on multiple public blockchains, including Base, Solana, and Sui. KAIO will be responsible for converting fund shares into on-chain assets that can be legally held and distributed, and will provide supporting investor access and holding infrastructure.
Sovereign wealth funds begin entering the tokenization market
Mubadala is one of Abu Dhabi's major state-owned investment institutions, managing assets approaching $400 billion. One of the core objectives of launching this tokenized version is to expand its reach to potential investors.
These types of private equity market products have historically targeted large institutions and high-net-worth individuals, with high entry barriers, typically requiring participation through large private banks or existing distribution channels. Tokenization makes the product distribution and holding methods closer to native on-chain assets, but investors still need to meet eligibility requirements.
It has attracted approximately $75 million in investment.
KAIO stated that the tokenization arrangements surrounding the Mubadala fund have attracted approximately $75 million in funding, with investors including both traditional institutions and crypto-native allocators.
According to the introduction, investors cannot directly purchase these products on the open market. Instead, they need to complete offline account opening and verification through licensed fund management and administrative channels before obtaining on-chain identity configuration to view and subscribe to eligible products.
Over the past year, tokenized stocks and funds have seen significant expansion in the crypto industry. A16z crypto previously reported that the market size was approximately $1.7 billion as of the end of June, representing a growth of about 400%. Participants have also expanded from crypto-related products to a wider range of assets, including US stocks, ETFs, and AI-related stocks.
Unlike previous collaborations primarily driven by securities firms, trading platforms, or asset management institutions, this partnership brings sovereign wealth funds into the tokenization market and allows RWA to move from product pilots to institutional asset allocation scenarios.
