Mubadala Capital Partners With Coinbase and KAIO to Tokenize Evergreen Private Equity Fund

Abu Dhabi’s state-owned investment firm Mubadala Capital has launched a regulated tokenized vehicle for its evergreen private markets fund, partnering with cryptocurrency exchange Coinbase and blockchain technology provider KAIO.

Under the agreement, Coinbase is acquiring shares of the tokenized fund directly to hold on its corporate balance sheet, utilizing its proprietary Layer-2 blockchain Base alongside the Solana and Sui networks for digital issuance. The move represents an unprecedented step by a major U.S. publicly listed company in adopting regulated digital tokens for native on-chain treasury management.

Infrastructure platform KAIO, which handles technical compliance and asset issuance, revealed that the tokenized fund initiative has already attracted approximately $75 million from both conventional and crypto-native institutional allocators. KAIO previously spearheaded tokenization infrastructure for prominent global asset managers including BlackRock, Brevan Howard, Hamilton Lane, and Laser Digital.

The entry of a sovereign fund into digital asset tokenization underscores the rapid convergence of traditional finance and Web3 infrastructure. Mubadala Capital, which manages nearly $400 billion in assets under management, aims to broaden participation in illiquid private equity deals that traditionally required deep institutional relationships or private banking channels.

Tokenized real-world assets have expanded rapidly across institutional capital markets over the past year. Industry data from a16z crypto indicates that the market cap of tokenized equities jumped nearly 400 percent to roughly $1.7 billion in mid-2024, driven by institutional interest in digital treasury management, private credit, and tokenized exchange-traded funds.

To access the vehicle, qualified investors must complete off-chain onboarding and identity verification through a licensed fund administrator. Once approved, users receive a verified on-chain profile that restricts visible assets and transaction permissions according to jurisdictional regulatory rules.