Abu Dhabi’s Mubadala Capital has entered into a collaboration with institutional infrastructure provider RWA Kaio to explore how digital rails can support tokenized access to private market strategies.
Key points to remember:
- Mubadala Capital explores token access to the private market with Kaio.
- The partnership reflects the growing institutional interest in RWAs.
- Tokenized assets continue to gain momentum as infrastructure improves.
Announced on Tuesday, the partnership will focus on how Kaio’s framework could enable institutional and accredited investors to access Mubadala Capital’s private market products online.
While the work remains exploratory, it reflects growing interest in using RWA tokenization to modernize fund structures traditionally constrained by high minimums, long lock-ups, and jurisdictional limits.
Mubadala Capital manages $430 billion in global markets
Mubadala Capital oversees and advises over $430 billion in private equity, credit, real estate and alternative strategies.
It operates as a subsidiary of Mubadala Investment Company, one of Abu Dhabi’s leading sovereign wealth funds.
The group’s broader positioning in digital assets has attracted attention recently. In November, Bloomberg reported that the Abu Dhabi Investment Council, another Mubadala subsidiary, held at least $500 million in BlackRock’s spot Bitcoin ETF.
In Tuesday’s announcement, Fatima Al Noaimi and Max Franzetti, co-directors of Mubadala Capital Solutions, said the goal was to work with regulatory-aligned infrastructure to understand how tokenization can expand access to institutional-grade vehicles.
Kaio brings prior industry experience, having helped structure tokenized feeder funds for companies including BlackRock, Brevan Howard and Hamilton Lane.
The company has transferred over $200 million in institutional assets on-chain and says the Mubadala initiative highlights the dynamics behind on-chain investment products.
“This launch demonstrates how traditional institutional capital is now moving on-chain,” said Shrey Rastogi, CEO of Kaio.
The move places Mubadala among a growing cohort of institutional actors exploring whether symbolic mechanisms can reduce operational friction and ultimately expand global participation.
Data from CoinShares shows strong demand for RWA in 2025, particularly tokenized U.S. Treasuries, which increased from $3.9 billion to $8.6 billion this year. The company expects this trend to continue through 2026, as the appetite for dollar-based returns remains high.
Infrastructure is also evolving to support this change. On Wednesday, Polygon rolled out a hard fork aimed at boosting the performance of high-frequency applications such as stablecoins and tokenized RWAs.
RWA tokenization is gaining momentum
On Monday, Libeara, the blockchain infrastructure platform backed by SC Ventures, the venture capital arm of Standard Chartered, launched a new tokenized gold investment fund in Singapore, bringing one of the world’s oldest safe haven assets on digital rails.
The fund, launched in partnership with FundBridge Capital, allows professional investors to gain exposure to gold through blockchain-based tokens issued on Libeara’s ledger.
In a recent study, Web3 digital property company Animoca Brands said tokenizing RWAs could unlock a $400 trillion traditional financial market.
Animoca researchers Andrew Ho and Ming Ruan said the global market for private credit, Treasury debt, commodities, stocks, hedge funds and bonds represents a broad avenue for growth.
“The $400 trillion addressable TradFi market highlights the growth potential of RWA tokenization,” they wrote.
Meanwhile, according to the Skynet RWA 2025 Security Report, the tokenized RWA market could reach $16 trillion by 2030.
The article Abu Dhabi’s Mubadala Capital Partners with Kaio to Explore On-Chain RWAs appeared first on Cryptonews.
