Abu Dhabi’s Mubadala Capital Partners With Kaio to Explore On-Chain RWAs

Core Insights - Mubadala Capital has partnered with Kaio to explore how digital rails can facilitate tokenized access to private market strategies [1][2] - The collaboration aims to test Kaio's framework for enabling institutional and accredited investors to access Mubadala's private market products onchain [2] - This initiative reflects a growing interest in RWA tokenization to modernize traditional fund structures that have high minimums and long lockup periods [2] Company Overview - Mubadala Capital manages over $430 billion across various sectors including private equity, credit, real estate, and alternative strategies [3] - It operates as a subsidiary of Mubadala Investment Company, a significant sovereign wealth fund in Abu Dhabi [3] Digital Asset Positioning - Mubadala's digital asset strategy has gained attention, with reports indicating that the Abu Dhabi Investment Council holds at least $500 million in BlackRock's spot Bitcoin ETF [4] - The co-heads of Mubadala Capital Solutions emphasized the goal of collaborating with regulatory-aligned infrastructure to broaden access to institutional-grade investment vehicles [4] Kaio's Role - Kaio has experience in structuring tokenized feeder funds for major firms like BlackRock and Brevan Howard, having moved over $200 million in institutional assets onchain [5] - The partnership with Mubadala highlights the momentum behind onchain investment products, as stated by Kaio's CEO [5] Market Trends - The collaboration places Mubadala among institutional players investigating the potential of tokenized mechanisms to reduce operational friction and enhance global participation [6] - CoinShares data indicates a significant increase in demand for RWAs, particularly tokenized US Treasurys, which rose from $3.9 billion to $8.6 billion this year, with expectations for continued growth into 2026 [6] Infrastructure Developments - The infrastructure supporting this shift is evolving, as evidenced by Polygon's recent deployment of a hard fork aimed at improving performance for high-frequency applications like stablecoins and tokenized RWAs [7] Summary of Initiatives - Mubadala Capital is actively exploring tokenized private market access in collaboration with Kaio, reflecting rising institutional interest in RWAs and the increasing momentum of tokenized assets as infrastructure improves [8]