- Mubadala Capital tokenized its Alternative Solutions Fund via KAIO.
- Mubadala collaborated with Coinbase and KAIO to bring tokenized funds to Solana, Base, & Sui.
- Tokenized funds will make private markets available to investors worldwide.
Solana network has announced the tokenization of Mubadala Capital’s Alternative Solutions Fund via KAIO, securing $75 million in commitments from traditional and digital investors. In its latest post on X, the blockchain network confirmed that the Abu Dhabi sovereign wealth fund arm, managing around $430 billion, brings its private markets strategy onchain across Solana and a few other networks.
Expanding the Investment Strategy’s Audience
According to reports, Mubadala teamed up with Coinbase and KAIO to put the product on the blockchain, making it live across three distinctive networks—Solana, Base, and Sui. With this development, an investment strategy has opened for a wider audience. An opportunity that previously existed only for a narrow group of institutional investors.
Tokenizing the fund provides a wider pool of investors worldwide with an investment opportunity through regulated crypto infrastructure rather than the traditional cumbersome process. It also provides accessibility to investment companies, assets, and credit that are not listed on public stock exchanges.
Breaking the Accessibility Barrier
Previously, such opportunities were open only to the largest investors, such as sovereign funds, pension funds, and endowments. This was possible because of the high cost of tickets, complexity of paperwork, and geographical limitations. However, everything changes with tokenization.
Representing Mubadala’s fund shares as digital tokens on a blockchain enables the firm to make its products available to a broader range of qualified investors. It would also enable faster transaction settlement and reduced administrative costs.
A Strategically Structured Program
Max Franzetti, Head of Mubadala Capital Solutions, explained that the company built its tokenization strategy on differentiated access. According to Franzetti, it is structured with a deal flow and co-investment model that provides access to a global network previously unreachable to most investors.
Notably, the fund’s launch pattern fits into a structure that allows Abu Dhabi Sovereign Wealth Fund to focus on institutional Bitcoin and digital asset infrastructure such as custody and regulated capital markets. Meanwhile, KAIO already has funds from BlackRock, Brevan Howard and Hamilton Lane live on its platform, with around $150 million in total assets across more than 10 blockchains.
Related: Abu Dhabi RWA Tokenization Grows with Mubadala Pilot And Galaxy Digital’s ADGM Launch
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