Mubadala Capital, the asset management arm of Abu Dhabi's $385 billion sovereign wealth fund, has partnered with cryptocurrency exchange Coinbase and Abu Dhabi-based fintech firm Kaio to launch a tokenized private market investment fund across three public blockchain networks.

The fund is now operational on the Base, Solana, and Sui blockchains and has attracted $75 million in commitments from investors, including Coinbase itself, which also participated as a strategic investor in the launch. Kaio is providing the tokenization infrastructure for the initiative. The deployment across three networks is notable because most tokenized funds to date have launched on a single chain—typically Ethereum—meaning the multi-chain approach broadens the potential investor reach across different blockchain ecosystems. Base, notably, is the Layer 2 network developed by Coinbase itself, giving the exchange a direct role on both the infrastructure and investment sides of the initiative.

The project represents one of the most significant cases to date of a sovereign-backed asset manager adopting blockchain technology to widen access to institutional-grade investment strategies. It follows other major institutions entering the space, including BlackRock, which launched its BUIDL tokenized fund on Ethereum in 2024, signaling that tokenized real-world assets are moving from experimental pilots to mainstream financial products.

Expanding Access to Private Markets

The tokenized structure is designed to open a strategy previously restricted to a narrow set of institutional investors to a broader global pool of qualified participants through regulated digital asset infrastructure.

Private market investments—encompassing private equity, private credit, and other non-listed assets—have historically been the domain of sovereign wealth funds, pension funds, endowments, and other large institutions. High minimum investment thresholds, extensive documentation requirements, and geographically constrained distribution channels have limited broader participation.

By representing fund interests as blockchain-based digital tokens, the structure aims to streamline investment processes, improve transaction efficiency, and reduce administrative overhead. Tokenization also has the potential to enhance liquidity by enabling investors to transfer tokenized fund interests through blockchain-based secondary markets, bypassing the lengthy legal and operational procedures that typically accompany traditional fund transfers.

Interest in tokenized real-world assets has grown sharply. The market surpassed $30 billion in value during early 2026, reflecting rapid year-over-year expansion as financial institutions increasingly explore blockchain-enabled investment products.

Institutional Adoption Gains Momentum

The launch stands out because it involves one of the world's largest sovereign-backed investment organizations rather than an emerging blockchain startup. Mubadala's total assets increased 17% to $385 billion during 2025. Mubadala Capital manages and administers more than $600 billion across private equity, venture capital, credit, and co-investment strategies.

Max Franzetti, Head of Mubadala Capital Solutions, explained that the firm's investment strategy has historically relied on privileged access to opportunities, co-investments, and an extensive global network. He indicated that deploying the strategy on blockchain infrastructure would allow a wider group of qualified investors to access those opportunities while preserving the institutional investment standards that guide the firm's portfolio management.

A particularly notable aspect of the initiative is Coinbase's decision to include exposure to the tokenized Mubadala strategy on its corporate balance sheet. The move marks a rare instance of a publicly traded U.S. company holding a sovereign-backed private market investment as part of its treasury assets, and it adds to a small but growing list of public companies allocating treasury capital to tokenized instruments.

Brett Tejpaul, Co-Chief Executive of Coinbase Institutional, stated that adding the tokenized Mubadala strategy to Coinbase's balance sheet reflects the growing maturity of regulated real-world asset markets and demonstrates increasing institutional confidence in blockchain-based financial products.

Abu Dhabi Strengthens Digital Finance Ecosystem

The partnership also underscores Abu Dhabi's expanding role in digital finance and institutional blockchain infrastructure. The emirate has increasingly focused on regulated digital asset markets, cryptocurrency custody services, and blockchain innovation through the Abu Dhabi Global Market (ADGM), a financial free zone established in 2013 that operates under English common law and has developed a dedicated regulatory framework for digital assets.

Kaio, the infrastructure provider behind the tokenized fund, has previously deployed blockchain-based investment products for several global asset managers. The company currently supports approximately $150 million in tokenized assets across more than 10 blockchain networks.

While the broader tokenized asset sector remains relatively small compared to global capital markets, industry forecasts suggest tokenized real-world assets could grow into a multi-trillion-dollar market over the next decade as financial institutions increasingly adopt blockchain infrastructure for traditional investment products.

The collaboration reflects accelerating adoption of blockchain technology by major financial institutions seeking to expand access, improve liquidity, and modernize private market investments through regulated tokenization. The Mubadala initiative demonstrates how sovereign-backed asset managers are moving beyond pilot programs and integrating blockchain into established investment strategies, signaling continued convergence between traditional financial markets and digital asset infrastructure.