Mubadala Capital, the alternative asset management arm of Abu Dhabi’s Mubadala Investment Company, oversees approximately $430 billion in managed, advised or managed assets. This scale gives weight to the movement. A sovereign manager of this size choosing to tokenize a fund signals something beyond experimentation. The news was reported by International Media Investments (IMI)-owned publication The National and journalist Salim A. Essaid.
What is launched
The product is the Mubadala Capital Alternative Solutions Fund, an ongoing strategy built around private equity, direct investments and credit exposures. Mubadala designed it for lower volatility and stable cash yield, leveraging the company’s deal flow and co-investment network.
The fund now operates on Coinbase’s Base network, alongside Solana and Sui. Related share classes also appear on Ethereum, Avalanche, Polygon and Sei. Access remains limited to qualified institutional and accredited investors, with a minimum investment of approximately $100,000.
UAE-based infrastructure provider KAIO handles issuance and administration. KAIO’s platform now supports approximately $144 million in tokenized funds, with previous work linked to Hamilton Lane, Brevan Howard, Blackrock and Laser Digital.
Coinbase puts its own balance sheet
Coinbase has direct exposure to the fund. The company did not disclose the amount of the investment. A publicly traded crypto exchange allocating company capital to a tokenized private markets product is still rare. So far, most tokenization activity has focused on distribution and not allocation of corporate treasure.
Brett Tejpaul, head of Coinbase Institutional, has overseen the move to programmability. He said regulated assets that become programmable can join a broader on-chain economy that is more transparent, composable and accessible to qualified investors in eligible jurisdictions.
How did it get here
Mubadala Capital and KAIO first announced the partnership in December 2025. At that point, it was described as an exploration of tokenized access for qualified investors using KAIO’s compliant infrastructure.
Max Franzetti, co-head of Mubadala Capital Solutions, emphasized governance and regulatory alignment throughout the project. KAIO CEO Shrey Rastogi described the work as increasing on-chain institutional capital without sacrificing compliance or investor protection.
In April 2026, Tether led an $8 million fundraising round for KAIO, with participation from Systemic Ventures and other backers. KAIO announced at the time that it planned to launch the Mubadala fund and expand into credit, structured products and ETFs, while also channeling USDT liquidity into regulated products.
The fund itself launched near the end of June 2026. Coinbase’s multi-chain deployment and balance sheet position became public on July 23, 2026, with on-chain assets reaching approximately $75 million.
Why it matters
Traditional managers have been tokenizing funds for several years now. Blackrock, Franklin Templeton, Apollo, Fidelity, Janus Henderson and Invesco have all turned to tokenized Treasuries, money market funds or private credit.
Citi projects that tokenized securities could reach around $5.5 trillion by 2030. Broader estimates from BCG and Ripple place total tokenized assets much higher in the early 2030s.
Tokenization changes distribution mechanisms. It can reduce some operational costs, open up fractional access to qualified investors, and allow fund interests to function as collateral within other on-chain systems. Abu Dhabi and Dubai continue to position themselves as regulatory hubs for this activity.
For Mubadala, the call is to expand its existing deal flow and co-investment access to a new investor base while keeping institutional oversight intact. For Coinbase, taking a direct position demonstrates confidence in the asset class for which it is helping to build infrastructure.
The next test comes with adoption. Whether other sovereign wealth managers will follow Mubadala onto public blockchains will depend on how that fund performs and how regulators in the United States and elsewhere respond to the movement of institutional capital on-chain.