Mubadala Capital, the asset management division of Abu Dhabi’s sovereign wealth fund, has formed a strategic partnership with Kaio, a provider of real-world asset (RWA) infrastructure, to explore the use of tokenization for private market investments. The collaboration will enable institutional investors to access Mubadala Capital’s private market products on blockchain platforms, creating new opportunities for broader participation.
Private market investments have traditionally been restricted by high minimums, long lock-up periods, and geographic limitations. By incorporating blockchain technology, this partnership aims to eliminate these barriers and democratize access to alternative investments, making them available to a global audience.
This move signals a shift in the way private market investments are accessed, allowing for more flexibility and improved efficiency.
Mubadala Capital’s Asset Management Strategy
Mubadala Capital manages over $430 billion in assets across a range of sectors, including private equity, real estate, and credit. Kaio, which has facilitated the tokenization of over $200 million in institutional assets for major asset managers like BlackRock, is helping lead the way in the tokenization of investment vehicles. This partnership marks a significant step forward in digital asset infrastructure for institutional investors.
Fatima Al Noaimi and Max Franzetti, co-heads of Mubadala Capital Solutions, highlighted that the goal of this initiative is to test how digital infrastructure can increase access to institutional-grade investment products while complying with regulatory standards.
Kaio CEO Shrey Rastogi emphasized that this partnership demonstrates how traditional institutional capital can scale on blockchain platforms, unlocking new potential for global asset management.
Tokenized Assets: A Growing Trend in Institutional Investment
The rise of tokenized real-world assets (RWAs) is gaining traction, with tokenized US Treasurys growing from $3.9 billion to $8.6 billion in 2025. Experts expect this trend to continue through 2026, driven by increased demand for tokenized assets, offering greater liquidity and streamlined investment processes.
Infrastructure providers like Polygon are also preparing to meet the demand for tokenized RWAs, signaling broader adoption in the institutional space. This partnership between Mubadala Capital and Kaio highlights the growing importance of blockchain in asset management.
Circle’s Expansion in the Middle East Boosts UAE’s Crypto Landscape
Circle, the issuer of the USDC stablecoin, made a significant step in its Middle Eastern expansion by securing a financial services license from the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM). This license allows Circle to provide regulated payment and settlement services to businesses and financial institutions in the UAE.
Circle’s co-founder and CEO, Jeremy Allaire, emphasized that the ADGM’s emphasis on transparency, risk management, and consumer protection aligns with Circle’s goal of enabling stablecoins like USDC to facilitate global payments. This development further strengthens the UAE’s position as a hub for blockchain innovation.