Abu Dhabi-based Mubadala Capital has teamed up with Kaio, an institutional real-world asset (RWA) infrastructure provider, to explore tokenized access to private market investment strategies. This partnership signifies a shift for sovereign-linked capital towards blockchain technology.
On Tuesday, the companies announced that they will evaluate how Kaio’s digital framework could allow institutional and accredited investors to access Mubadala Capital’s private products on-chain.
This initiative indicates a growing interest in RWA tokenization as a technological advancement, providing a distribution layer for alternative assets that have traditionally been limited by high minimums, long lockup periods, and regional constraints.
While no product is set to launch immediately, this collaboration represents an important step towards digitizing fund structures and potentially broadening access to one of the region’s major asset managers.
Sovereign-linked asset manager leans into RWAs
Mubadala Capital oversees, advises, and manages over $430 billion in assets across various sectors including private equity, credit, real estate, and alternative strategies through its investment platforms.
It operates as a subsidiary of Mubadala Investment Company, one of the sovereign wealth funds of the Abu Dhabi government.
On Nov. 19, Bloomberg reported that the Abu Dhabi Investment Council (ADIC), another subsidiary of Mubadala, had invested over $500 million in BlackRock’s spot Bitcoin exchange-traded fund (ETF).
Fatima Al Noaimi and Max Franzetti, the co-heads of Mubadala Capital Solutions, stated that their aim is to leverage regulatory-compliant infrastructure to explore how digital methods can enhance access to institutional-grade products.
Kaio has previously facilitated tokenized feeder structures for asset managers like BlackRock, Brevan Howard, and Hamilton Lane, bringing over $200 million in institutional assets on-chain.
The company noted that its partnership with Mubadala indicates a growing trend toward tokenized investment vehicles in both public and private markets.
“This launch showcases how traditional institutional capital is now transitioning on-chain,” remarked Kaio CEO Shrey Rastogi.
Cointelegraph reached out to Kaio for further information, but we had not received a response by the time of publication.
Related: Tether’s USDt awarded key regulatory status in Abu Dhabi
Tokenized RWAs to continue momentum in 2026
By engaging with tokenization infrastructure, Mubadala Capital joins a growing array of institutional players examining whether on-chain methods can streamline operations, minimize friction, and ultimately expand participation.
Digital asset investment firm CoinShares previously reported that RWAs experienced significant growth in 2025, driven by tokenized US Treasurys. The report indicated that on-chain Treasurys rose from $3.9 billion to $8.6 billion in that year.
In addition to asset managers, infrastructure providers are also gearing up for an increase in tokenized RWAs.
On Wednesday, Polygon implemented a hard fork intended to strengthen its infrastructure and enhance performance, which appeared to be a necessary step for high-frequency applications, such as stablecoin and RWA tokenization.
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