Abu Dhabi is moving its sovereign wealth strategy directly onto the blockchain. Mubadala Capital launched a tokenized private markets fund on July 23, and it already pulled in $75 million from investors.
But this isn’t just another sovereign fund dipping its toes into digital assets. Coinbase is acting as a primary investor. The US exchange took a direct stake. It moved the tokenized strategy straight onto its own corporate balance sheet.
The product is actively live across Base, Solana, and Sui. That cross-chain deployment, verified by The National, bypasses the walled gardens typically associated with institutional finance. And Coinbase putting its own capital on the line proves the exchange’s institutional appetite is accelerating.
Execution required specialized tech. Mubadala didn’t build the rails internally. They tapped Kaio, a FinTech firm based in Abu Dhabi, to act as the infrastructure partner. This setup explicitly targets the friction that normally keeps regular accredited investors out of private equity. By tokenizing the fund, Kaio’s architecture bypasses multi-year lock-up periods, according to CoinTelegraph reports. Investors gain access to secondary market liquidity instead of waiting a decade to cash out.
Tokenized RWAs Hit $30 Billion as Sovereign Funds Ditch TradFi Friction
The broader real-world asset (RWA) market crossed $30 billion in early 2026. That is a 300 percent jump from the previous year. Sovereign funds are watching that volume closely. Traditional private equity relies on strict, illiquid structures where capital sits idle for years. Tokenization completely breaks that model.
By issuing shares on decentralized networks, Mubadala forces traditionally rigid assets into a liquid environment. Faster settlements happen automatically. Qualified global buyers can trade their stakes on secondary markets. When a major sovereign wealth fund abandons traditional financial rails to build on open protocols, the broader private equity sector has to reconsider how it handles share issuance.