Mubadala Capital Partners with Kaio to Tokenize Private Markets, Unlocking Onchain Institutional Access

Source: DefiPlanet Original Title: Mubadala Capital Partners with Kaio to Tokenize Private Markets, Unlocking Onchain Institutional Access Original Link: https://defi-planet.com/2025/12/mubadala-capital-partners-with-kaio-to-tokenize-private-markets-unlocking-onchain-institutional-access/ Quick Breakdown

• Mubadala Capital, the Abu Dhabi sovereign wealth fund’s investment arm, teams up with Kaio to test tokenized private market strategies on blockchain.
• The pilot targets onchain access to illiquid assets like private equity and venture capital, to improve liquidity and transparency for investors.
• Move signals growing sovereign interest in RWAs amid regulatory clarity in the UAE.

Mubadala Capital announced a partnership with Kaio Technologies to pioneer tokenized access to private market strategies. The collaboration launches a proof-of-concept platform that brings traditionally illiquid assets onto blockchain networks. Investors gain fractional ownership and real-time settlement without intermediaries.

The initiative focuses on private equity, venture capital, and real estate funds managed by Mubadala. Kaio’s infrastructure handles tokenization, compliance, and custody, leveraging permissioned blockchains for institutional-grade security. Early tests involve select UAE-based funds with over $500 million in assets under management.

Tokenization Drives Middle East RWA Momentum

Abu Dhabi-based Mubadala manages $300 billion in assets and views tokenization as a pathway to scale private markets. The pilot aligns with the UAE’s Vision 2031, which prioritizes digital assets and blockchain integration. Regulators like ADGM and VARA provide supportive frameworks, including licenses for RWA platforms.

Kaio, backed by UAE investors, specializes in compliant tokenization for family offices and funds. Similar pilots have tokenized $100 million in real estate since 2024. This deal positions Mubadala ahead of peers in the region, which explore RWAs through local exchanges.

Broader Implications for Global RWAs

Tokenized RWAs surged 300% in 2025, reaching $10 billion onchain. Leading financial institutions in developed markets are driving adoption in the US, but Middle East funds now compete with pilots like this one. Challenges remain around oracle reliability and cross-border compliance, yet demand from high-net-worth investors continues to grow.

Sovereign funds represent 20% of tokenized asset inflows this year. Mubadala’s move could attract $5 billion in follow-on capital by 2026, analysts predict. It underscores blockchain’s shift from speculation to utility in traditional finance.

Meanwhile, major derivatives marketplaces have established new regional hubs in the Dubai International Financial Centre (DIFC). This strategic expansion, operating under a Dubai Financial Services Authority (DFSA) license, is designed to expand regulated access to crypto and digital asset derivatives for institutional clients in the Middle East.

The move reflects the company’s commitment to the region’s burgeoning digital asset sector and aims to strengthen institutional access to crypto markets through collaboration with regulators and brokers.