Mubadala Capital, the alternative asset management arm of Abu Dhabi's Mubadala Investment Company overseeing roughly $430 billion in assets, tokenized its Alternative Solutions Fund, with $75 million onchain as of July 23, 2026, according to The National. Coinbase took a direct balance sheet stake in the fund, marking an early case of a publicly traded crypto exchange allocating corporate capital to a tokenized private markets product. The move comes as UAE-based infrastructure provider KAIO now administers $144 million in tokenized funds after Tether led its $8 million funding round in April 2026, positioning Abu Dhabi as a regulatory hub for institutional blockchain adoption.
Mubadala Capital Launches Alternative Solutions Fund on Multiple Blockchains
The Mubadala Capital Alternative Solutions Fund is an evergreen strategy built around private equity, direct investments, and credit exposures. Mubadala designed the fund for lower volatility and steady cash yield, drawing on the firm's deal flow and co-investment network. The fund runs on Coinbase's Base network, along with Solana and Sui. Related share classes also appear on Ethereum, Avalanche, Polygon, and Sei. Access stays limited to qualified institutional and accredited investors, with a minimum investment around $100,000. UAE-based infrastructure provider KAIO handles issuance and administration. KAIO's platform now supports roughly $144 million in tokenized funds overall, with prior work tied to Hamilton Lane, Brevan Howard, Blackrock, and Laser Digital.
Coinbase Allocates Balance Sheet Capital to Tokenized Fund
Coinbase is taking exposure to the fund directly. The company did not disclose the size of the investment. Brett Tejpaul, head of Coinbase Institutional, framed the move around programmability. He said regulated assets that become programmable can join a broader onchain economy, one that's more transparent, composable, and accessible to qualified investors in eligible jurisdictions.
Mubadala and KAIO Partnership Timeline from December 2025 to July 2026
Mubadala Capital and KAIO first announced the partnership in December 2025. At that point, it was described as an exploration into tokenized access for qualified investors using KAIO's compliant infrastructure. Max Franzetti, co-head of Mubadala Capital Solutions, has emphasized governance and regulatory alignment throughout the buildout. KAIO CEO Shrey Rastogi has described the work as institutional capital scaling onchain without giving up compliance or investor protections. In April 2026, Tether led an $8 million funding round for KAIO, with Systemic Ventures and other backers joining. KAIO said at the time it planned to launch the Mubadala fund and expand into credit, structured products, and ETFs, while routing USDT liquidity into regulated products. The fund itself went live around late June 2026. The multi-chain rollout and Coinbase's balance sheet position became public on July 23, 2026, with onchain assets reaching approximately $75 million.
Tokenized Securities Market Projected to Reach $5.5 Trillion by 2030
Traditional managers have been tokenizing funds for several years. Blackrock, Franklin Templeton, Apollo, Fidelity, Janus Henderson, and Invesco have all moved into tokenized treasuries, money market funds, or private credit. Citi projects tokenized securities could reach roughly $5.5 trillion by 2030. Broader estimates from BCG and Ripple put total tokenized assets much higher by the early 2030s. Tokenization changes distribution mechanics. It can lower some operational costs, open fractional access for qualified investors, and let fund interests function as collateral inside other onchain systems. Abu Dhabi and Dubai continue positioning themselves as regulatory hubs for this activity. For Mubadala, the appeal is extending its existing deal flow and co-investment access to a new investor base while keeping institutional oversight intact. For Coinbase, taking a direct position signals confidence in the asset class it's helping build infrastructure for.
FAQ
What did Mubadala Capital tokenize on July 23, 2026?
Mubadala Capital tokenized its Alternative Solutions Fund, an evergreen strategy built around private equity, direct investments, and credit exposures, with $75 million onchain as of July 23, 2026.
Why did Coinbase invest in the Mubadala Capital tokenized fund?
Coinbase took a direct balance sheet stake in the fund, with Brett Tejpaul stating that regulated assets becoming programmable can join a broader onchain economy that's more transparent, composable, and accessible to qualified investors in eligible jurisdictions.
How much does KAIO administer in tokenized funds after Tether's investment?
KAIO now administers $144 million in tokenized funds after Tether led its $8 million funding round in April 2026.
