Mubadala Capital tokenizes private markets fund on Coinbase Base network

Mubadala Capital has brought one of its private markets investment funds onchain, using infrastructure from UAE-based tokenization specialist KAIO. The fund runs on Coinbase's Base network, Solana and Sui. It has already attracted about $75 million in onchain assets, according to the companies.

Coinbase is also taking exposure to the fund on its own corporate balance sheet. That is an early example of a publicly traded crypto company investing in a tokenized private markets product. The companies did not disclose the size of the investment.

Mubadala oversees about $430 billion in assets. It joins BlackRock, Franklin Templeton, Apollo, Fidelity, Janus Henderson and Invesco in putting funds on blockchain rails. Most of those offerings have focused on U.S. Treasuries, money market funds and private credit.

The tokenized fund is available to qualified investors. KAIO issues and administers the tokens. The company said Mubadala joins firms including Hamilton Lane, Brevan Howard and Laser Digital on its platform, which holds $144 million in tokenized funds.

Citi has projected tokenized securities could grow to roughly $5.5 trillion by 2030. Boston Consulting Group and Ripple put the figure at $18.9 trillion by 2033.

“This strategy was built on differentiated access – to deal flow, to co-investment, to a global network that most investors cannot reach on their own,” Max Franzetti, head of Mubadala Capital Solutions, said in a statement. “Bringing it onchain extends that access to a new class of qualified investors without compromising the institutional discipline that defines how we invest.”

Brett Tejpaul, head of Coinbase Institutional, said Coinbase adding the fund to its balance sheet reflects growing interest in regulated tokenized assets as treasury holdings. “As regulated assets become programmable, they can become part of a broader onchain economy that is more transparent, composable and accessible to qualified investors in eligible jurisdictions.”

The launch fits into the UAE's broader ambition to become a hub for tokenized finance. Abu Dhabi and Dubai have rolled out crypto frameworks as banks, sovereign-backed investors and financial firms experiment with tokenized funds, bonds and stablecoins.

AlphaScala gives Coinbase an Alpha Score of 25 out of 100, with a "Weak" label in the Financials sector. The score reflects the stock's current risk-reward setup relative to its sector peers.