Abu Dhabi-based Mubadala Capital has teamed up with institutional real-world asset (RWA) infrastructure provider Kaio to investigate tokenized access to private market investment strategies, signaling a shift from sovereign-linked capital into blockchain technologies.
The firms announced on Tuesday that the initiative will explore how Kaio’s digital framework can facilitate institutional and accredited investors’ access to Mubadala Capital’s private market products onchain.
This move indicates interest in utilizing RWA tokenization as a technological advancement and a distribution method for alternative assets that have traditionally been limited by high minimums, extensive lockup periods, and geographic restrictions.
Although no product has launched yet, this partnership represents progress in digitizing fund structures and possibly enhancing global access channels for one of the region’s largest asset managers.
Sovereign-linked asset manager delves into RWAs
Mubadala Capital oversees, advises, and manages over $430 billion in assets across private equity, credit, real estate, and alternative strategies via its asset management and 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 Mubadala subsidiary, held at least $500 million in BlackRock’s spot Bitcoin exchange-traded fund (ETF).
Fatima Al Noaimi and Max Franzetti, co-heads of Mubadala Capital Solutions, stated in the announcement that the intention is to utilize regulatory-compliant infrastructure to test how digital technologies can expand access to institutional-grade products.
Kaio, which has previously supported tokenized feeder structures for asset managers including BlackRock, Brevan Howard, and Hamilton Lane, brought over $200 million in institutional assets onchain.
The company noted that its collaboration with Mubadala underscores the momentum towards tokenized investment vehicles across both public and private markets.
“This launch showcases how traditional institutional capital is successfully scaling onchain,” commented Kaio CEO Shrey Rastogi.
Cointelegraph reached out to Kaio for further information but did not receive a response by publication time.
Related: Tether’s USDt awarded key regulatory status in Abu Dhabi
Tokenized RWAs to maintain growth in 2026
By engaging with tokenization infrastructure, the firm joins a growing number of institutional players examining whether onchain solutions can streamline processes, lessen friction, and ultimately increase participation.
Digital asset investment firm CoinShares previously reported that RWAs experienced significant growth in 2025, primarily driven by tokenized US Treasurys. The report indicated that onchain Treasurys surged from $3.9 billion to $8.6 billion this year.
The company anticipates this trend will persist into 2026, as global demand for dollar yields is likely to continue increasing.
Besides asset managers, infrastructure providers are also preparing for a rise in tokenized RWAs.
On Wednesday, Polygon announced a hard fork intended to bolster its infrastructure and enhance performance, seen as a prerequisite for high-frequency applications like stablecoin and RWA tokenization.
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