Mubadala Capital has tokenized its Alternative Solutions Fund through KAIO, securing $75 million in commitments from both traditional and digital investors. The Abu Dhabi sovereign wealth fund arm, which manages approximately $430 billion in assets, partnered with Coinbase and KAIO to deploy the fund onchain across three networks: Solana, Base, and Sui.

Solana confirmed the tokenization in a post on X, noting that the initiative brings Mubadala Capital's private markets strategy onchain.

Broadening Access to Private Markets

The tokenized fund makes an investment strategy previously restricted to a narrow group of institutional investors available to a wider, global audience. Through regulated crypto infrastructure, qualified investors can now access the fund without the high entry costs, complex paperwork, and geographical constraints that have traditionally characterized private market participation.

Until now, opportunities of this nature were largely limited to sovereign wealth funds, pension funds, and endowments. By representing fund shares as digital tokens on a blockchain, Mubadala Capital aims to reach a broader range of qualified investors while also enabling faster transaction settlement and reduced administrative costs.

The move places Mubadala Capital among a growing roster of global asset managers exploring tokenization. BlackRock launched its BUIDL tokenized money market fund on Ethereum in 2024, and firms including Franklin Templeton and Securitize have similarly deployed tokenized products. Boston Consulting Group has projected that tokenized real-world assets could reach approximately $16 trillion in value by 2030, reflecting broader institutional interest in bringing traditional financial instruments onchain.

A Strategically Structured Tokenization Model

Max Franzetti, Head of Mubadala Capital Solutions, stated that the firm built its tokenization strategy around differentiated access. According to Franzetti, the fund is structured with a deal flow and co-investment model that provides entry to a global network previously unavailable to most investors.

The fund's launch aligns with Abu Dhabi's broader focus on institutional Bitcoin and digital asset infrastructure, including custody services and regulated capital markets. The Abu Dhabi Global Market free zone has established a comprehensive digital assets regulatory framework, positioning the emirate as a jurisdiction for institutional crypto activity alongside competing hubs such as Singapore and Switzerland.

KAIO's Growing Tokenization Platform

KAIO, the tokenization platform facilitating the fund, already hosts funds from BlackRock, Brevan Howard, and Hamilton Lane. The platform currently manages approximately $150 million in total assets across more than 10 blockchains.

The decision to deploy across Solana, Base, and Sui rather than a single network reflects a multi-chain approach that has become increasingly common among tokenization platforms seeking to balance transaction throughput, cost efficiency, and ecosystem reach. Base, built on the Optimism stack and incubated by Coinbase, has attracted institutional tokenization activity partly through its connection to Coinbase's regulated infrastructure.