Abu Dhabi's Mubadala Capital, a sovereign wealth-backed asset manager, has partnered with tokenization platform KAIO to put one of its private market funds onchain. The fund will be accessible across the Base, Solana, and Sui networks. Coinbase has also taken a stake in the onchain fund involved in this push.
How the tokenization will work
KAIO will handle the technical side of converting the private fund into digital tokens. Those tokens will then be available for trading or holding on three separate blockchains: Base, which is Coinbase's Ethereum layer-2; Solana, a high-speed network; and Sui, a newer layer-1 focused on scalability. The move aims to give investors more flexibility in how they access and move the fund's exposure.
Coinbase's role
Coinbase has taken a direct stake in the onchain fund, though the size of the investment was not disclosed. The exchange's involvement signals growing interest from major crypto firms in bringing traditional assets like private equity funds onto blockchain rails. For Mubadala Capital, the partnership offers a way to modernize distribution and potentially reach a broader investor base.
Tokenizing private funds is still a niche practice, but it's gaining traction as asset managers look for efficiencies in settlement, transparency, and liquidity. By issuing across multiple chains, Mubadala Capital and KAIO are testing whether investors will embrace multi-chain access to what has historically been a closed, paper-heavy asset class. The success of this initiative could encourage other sovereign-backed funds to follow suit.
The fund's tokenization is expected to go live in the coming months, with further details on minimum investment amounts and secondary trading rules to be announced.
