Mubadala Capital tokenizes $430B fund on Solana, Sui, Base as Coinbase invests

Mubadala Capital tokenized a private markets fund on Base, Solana and Sui, bringing $430 billion in sovereign wealth assets onchain through infrastructure provider KAIO.

"Bringing it onchain extends that access to a new class of qualified investors without compromising the institutional discipline that defines how we invest," Max Franzetti, head of Mubadala Capital Solutions, said.

The fund has already attracted about $75 million in onchain assets, according to the companies. Coinbase took exposure to the fund on its own balance sheet, an early example of a publicly traded crypto company investing in a tokenized private markets product. The size of the investment was not disclosed.

The move adds Mubadala Capital to a growing list of major investment firms putting funds on blockchain rails. Citi projects tokenized securities could reach $5.5 trillion by 2030, while Boston Consulting Group and Ripple estimate $18.9 trillion by 2033.

KAIO, a UAE-based tokenization specialist that received backing from Tether in an $8 million funding round in April, provided the infrastructure to issue and administer the fund. The company said Mubadala joins firms including Hamilton Lane, Brevan Howard and Laser Digital that use its platform, which currently holds $144 million in tokenized funds across all clients.

The launch fits into the UAE's broader ambition to become a hub for tokenized finance. Abu Dhabi and Dubai have emerged as active jurisdictions for digital assets, with regulators rolling out crypto frameworks while sovereign-backed investors and financial firms experiment with tokenized funds, bonds and stablecoins.

Brett Tejpaul, head of Coinbase Institutional, said the investment reflects growing interest in regulated tokenized assets as treasury holdings. "As regulated assets become programmable, they can become part of a broader onchain economy that is more transparent, composable and accessible to qualified investors in eligible jurisdictions," he said.

BlackRock, Franklin Templeton, Apollo, Fidelity, Janus Henderson and Invesco have all launched or expanded tokenized fund offerings, mostly focused on US Treasuries, money market funds and private credit. Mubadala's entry marks the first sovereign wealth-backed asset manager to tokenize a private markets strategy.

This article is for informational purposes only and does not constitute investment advice.