TL;DR
- Abu Dhabi is testing a digital infrastructure designed to open institutional access to private-market strategies through tokenization.
- Mubadala Capital is working with Kaio to determine whether a regulated onchain architecture can lower minimums, remove geographic barriers and digitize fund structures.
- The firm manages more than $430 billion.
Abu Dhabi is testing a digital infrastructure to offer private-market strategies to institutional investors through tokenization.
Mubadala Capital launched a collaboration with Kaio to evaluate whether a regulated onchain framework can function as an access channel for products that have traditionally required high minimums, long lockups and physical presence in specific markets. The test does not involve launching any product, but aims to understand how to digitize fund structures and build a more efficient operating channel.
Mubadala Capital Manages More Than $430 Billion
Mubadala Capital manages more than $430 billion in private equity, credit, real estate and alternative strategies within Abu Dhabi’s sovereign-capital ecosystem. Its weight in the region is significant as RWAs continue to expand in 2025 and adoption grows for platforms that move institutional capital on blockchain rails.
According to Bloomberg, at least $500 million from the Abu Dhabi Investment Council was invested in BlackRock’s spot Bitcoin ETF. Capital is flowing into digital structures and regulated vehicles that operate with tokenized assets.
Replicating the Standards of Traditional Funds
Kaio provides the technical and regulatory infrastructure. The firm has already enabled tokenized feeder structures for BlackRock, Brevan Howard and Hamilton Lane, and has brought more than $200 million in institutional assets onchain. Its model relies on a framework that mirrors the compliance and oversight standards of traditional funds, but on a digital layer built to scale distribution and automate administrative processes. Mubadala’s goal is to evaluate that bridge: a system that preserves governance and control while shortening operational timelines and expanding product reach.
CoinShares recorded an increase in tokenized Treasurys from $3.9B to $8.6B in 2025, driven by global demand for dollar yields. The report projects that inflows will continue in 2026, pressuring asset managers and infrastructure providers to prepare models that can handle larger volumes. Polygon, for example, deployed a hard fork to reinforce its performance for high-frequency use cases linked to stablecoins and RWAs.
The collaboration between Mubadala and Kaio aims to determine whether a regulated architecture can broaden access to private markets and streamline operations without losing oversight or standards. If the model works, Abu Dhabi will establish a pathway that could reshape global distribution of alternative assets
