Abu Dhabi’s Mubadala Capital, the asset management arm of the emirate’s sovereign wealth fund, has tokenized one of its private market funds through KAIO, a tokenization platform. Coinbase has taken a strategic stake in the onchain vehicle, according to the original report. The fund is set to be deployed across three networks: Base, Solana, and Sui.

Mubadala manages more than $280 billion in assets, making its move into tokenization a notable institutional step rather than a small-scale experiment. Sovereign wealth funds have generally been cautious adopters of blockchain-based financial infrastructure, and Mubadala’s participation signals a shift from exploratory interest toward live deployment among state-backed allocators. By selecting three blockchains at launch, the firm is opting for a multi-chain structure rather than relying on a single network. For an institution of Mubadala’s size, deploying across several chains can relate both to access to liquidity and to infrastructure resilience.

A Multi-Chain Deployment

The fund’s planned distribution across Base, Solana, and Sui brings together networks with different technical and market profiles. Base, Coinbase’s Ethereum layer-2 network, provides a connection to Ethereum-based decentralized finance activity and Coinbase-linked settlement infrastructure. Solana is known for high-throughput transactions and fast asset movement. Sui uses a parallel processing architecture and has drawn attention from institutional staking and fintech-related integrations.

Sui’s recent activity has included a Nasdaq-listed staking firm and a major payments partnership, according to a recent market analysis. Together with developer activity observed across major blockchains, the selected networks reflect areas where liquidity, infrastructure, and institutional tooling have been developing. Private market funds, which traditionally rely on manual subscription processes, periodic reporting, and limited transferability, are an asset class where onchain representation could streamline administrative workflows even before broader secondary-market liquidity materializes.

Coinbase Takes a Strategic Stake

Coinbase’s equity position in the tokenized vehicle adds another dimension to the arrangement. The company is involved not only as an exchange or custody provider, but also through Base and selective fund-level participation, positioning itself as an infrastructure partner in the tokenization of traditional private-market assets. This deepens Coinbase’s push beyond trading revenue into the infrastructure layer supporting institutional digital asset adoption.

The development comes as real-world asset tokenization has continued to expand. Total value locked onchain recently crossed $20 billion, a threshold referenced in a weekly tokenization roundup. For Mubadala, the Coinbase relationship may support regulated settlement and potential secondary-market infrastructure. For Coinbase, the stake creates a relationship with a sovereign-backed allocator that could extend beyond a single fund.

The structure does not appear to require exclusivity, which is consistent with the decision to deploy the fund across Base, Solana, and Sui rather than only on Coinbase’s own network.

Tokenization Moves Further Into Institutional Markets

Mubadala’s tokenized fund arrives as tokenization efforts move from pilot projects toward production use across parts of the financial industry. In addition to the $20 billion onchain real-world asset milestone, recent weeks have included Bullish acquiring Equiniti for $4.2 billion in a tokenization-focused deal and Ondo Finance completing the first live tokenized Treasury settlement with JPMorgan. The combination of a sovereign wealth fund allocator, a major exchange infrastructure partner, and a multi-chain deployment adds to a growing body of evidence that tokenization is reaching institutions with larger balance sheets and longer operational track records than the crypto-native projects that dominated earlier cycles.

The regulatory and operational design of Mubadala’s tokenized private market fund remains unclear. The private fund structure could restrict secondary trading, and the tokenization may focus more on operational efficiency than on broad public liquidity. Whether the onchain wrapper enables seamless settlement or functions primarily as an early implementation will depend on further details about the fund’s structure.

Developer activity on the selected networks also provides context for the durability of the infrastructure. Networks with sustained developer engagement are generally better positioned to maintain the tools and security standards required by institutional users. Recent rankings, including a review of top blockchains by developer activity, show Solana and Sui rising alongside Ethereum layer-2 networks. Mubadala’s move therefore comes amid both institutional adoption of tokenization and continued development across the underlying blockchain networks.