Coinbase will buy a regulated token representing Mubadala's $400B private markets fund and hold it on its balance sheet, a first for a major US public company.
Coinbase will buy a regulated digital token representing Mubadala Capital's evergreen private markets fund and hold it on its corporate balance sheet, the companies said July 23. The purchase marks the first time a major US public company uses a tokenized real-world asset for treasury management, according to partners involved.
Mubadala Capital oversees nearly $400 billion in assets, mostly in private equity and credit. The evergreen fund has no fixed termination date, allowing long-dated investments in unlisted companies, infrastructure, and loans. By tokenizing a slice of that portfolio, the Abu Dhabi-owned firm aims to attract a broader investor base while staying within regulatory guardrails, KAIO said.
KAIO, an infrastructure firm that has worked with BlackRock and Brevan Howard, handled the technical and compliance setup. The token is built on Coinbase's Base blockchain and Solana, with Sui also supported through cross-chain bridges managed by KAIO. Each token represents a proportional interest in the fund's net asset value, updated periodically. Redemption requests go through the fund administrator, not the blockchain, to comply with securities laws.
Investors cannot buy the token directly. They must first complete off-chain identity verification through a licensed fund administrator. Once approved, their wallet is whitelisted to hold and transfer the token. Secondary trading is restricted to other qualified investors, KAIO said.
KAIO said the initiative has already drawn about $75 million from traditional allocators and crypto-native investors. The fund is open for more subscriptions.
Coinbase's treasury purchase is the high-profile element. The company will use the token as part of its cash management strategy, aiming to earn yield from the private markets fund while keeping a regulated token on its books. A person familiar with the deal said Coinbase views this as a test case for broader treasury adoption of tokenized assets.
The tokenized real-world asset market has grown quickly. Crypto market analysis shows tokenized stocks alone reached about $1.7 billion in market capitalization by late June, up roughly 600% over the past year, according to a16z Crypto. Including bonds and funds, the total exceeds $4 billion, the firm estimated.
The SEC's recent proposed rule on transfer agents could affect tokenized securities. If finalized, it would require tokenized securities to be issued by a registered transfer agent. The Mubadala token uses KAIO as the technical issuer and the fund administrator as the transfer agent, a structure that could align with the proposed rule, a regulatory source said. Industry groups have pushed back on parts of the proposal. A recent article examined how transfer agents are pushing the SEC to restrict unaffiliated tokenized stocks.
AlphaScala's proprietary scoring gives Coinbase an Alpha Score of 27 out of 100, labeled Weak, reflecting near-term risks around regulatory uncertainty and earnings volatility. Intercontinental Exchange scores 49, labeled Mixed, indicating a balanced risk-reward profile. COIN stock page | ICE stock page
Other sovereign wealth funds are watching. A similar tokenization project by a Middle Eastern sovereign fund could encourage others, said an analyst at a blockchain consultancy who declined to be named.
The token went live on July 23 with $75 million in initial capital. Coinbase plans to increase its allocation over time, a person familiar said.
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