Mubadala Capital Partners with Kaio to Explore On-Chain RWAs

TLDR

• Mubadala Capital teams up with Kaio to explore tokenized access to private market strategies using blockchain technology.
• The partnership aims to modernize private market structures, overcoming limitations like high minimums and long lockups.
• Mubadala manages $430 billion in assets and is increasing its involvement in digital assets, including tokenized investment products.
• Kaio has moved over $200 million in institutional assets on-chain and has worked with firms like BlackRock and Hamilton Lane.
• The tokenized RWA market is growing, with tokenized US Treasurys rising from $3.9 billion to $8.6 billion in 2025.

Mubadala Capital, a subsidiary of Abu Dhabi’s Mubadala Investment Company, has teamed up with Kaio to explore tokenized access to private market strategies. The partnership, announced on Tuesday, focuses on using Kaio’s infrastructure to enable institutional investors to access Mubadala’s private market products via blockchain technology.

Mubadala Capital Explores On-Chain RWAs with Kaio

Mubadala Capital manages over $430 billion in assets across various sectors, including private equity and real estate. The firm is testing how tokenized assets can modernize traditional private market structures, which often feature high minimums, long lockups, and geographic limitations. Fatima Al Noaimi and Max Franzetti, co-heads of Mubadala Capital Solutions, explained the goal of the partnership is to explore how tokenization can improve access to institutional-grade investment vehicles.

The collaboration also reflects Mubadala’s increasing involvement in digital assets. In November, Bloomberg reported that the Abu Dhabi Investment Council, another Mubadala subsidiary, held at least $500 million in BlackRock’s Bitcoin ETF. Kaio, known for its work in tokenizing feeder funds for firms like BlackRock and Hamilton Lane, brings essential experience to the partnership.

Kaio has moved over $200 million in institutional assets onto the blockchain. Kaio’s CEO, Shrey Rastogi, emphasized the growing momentum of on-chain investment products, saying, “This launch demonstrates how traditional institutional capital is now scaling onchain.”

Institutional Interest in Tokenized RWAs Grows

The demand for tokenized RWAs is increasing, with investors showing interest in assets like tokenized US Treasurys. CoinShares data reveals that the market for tokenized US Treasurys grew from $3.9 billion to $8.6 billion this year, and it is expected to continue growing. Infrastructure improvements, such as Polygon’s recent hard fork, aim to enhance performance for high-frequency applications like stablecoins and tokenized RWAs.

Kaio’s work in this space aligns with a broader trend of institutional players exploring blockchain’s potential to streamline operations. This trend also points to an expanded global participation in previously restricted investment opportunities. As blockchain infrastructure matures, tokenization is poised to play a pivotal role in the future of private market investments.

The market for tokenized RWAs could reach $16 trillion by 2030, according to the Skynet RWA Security Report. This growth validates the expanding appeal of tokenization, which provides a more efficient way to invest in traditional assets. As the technology evolves, institutions are continuing to explore tokenization as a means to break down the barriers that have traditionally limited access to private markets.

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