Tokenization has become one of the fastest growing areas of digital assets as traditional financial companies look to modernize their treasury infrastructure. Citi recently predicted that tokenized securities could grow to approximately $5.5 trillion by 2030, and Boston Consulting Group and Ripple estimate that tokenized assets across all asset classes could reach $18.9 trillion by 2033.
Creating a blockchain-based token for an existing fund could expand access to new investors and open the door to using the fund’s shares as collateral or connecting to other on-chain financial applications.
In this particular case, KAIO will provide the infrastructure to issue and manage Mubadala Capital’s tokenized funds. Mubadala joins companies such as Hamilton Lane, Brevan Howard and Laser Digital in using the company’s platform to deliver investment products on-chain, and currently holds $144 million in tokenized funds on the company’s platform, the company said.
“This strategy was built on differentiated access to deal flows, co-investments and global networks that most investors cannot access on their own,” Max Franzetti, head of Mubadala Capital Solutions, said in a statement. “Bringing this on-chain expands access to a new class of accredited investors without compromising the institutional discipline that defines how they invest.”
Brett Tejpaul, head of Coinbase Institutional, said Coinbase’s addition of the fund to its corporate balance sheet investments reflects growing interest in tokenized assets regulated as government bond holdings. “As regulated assets become programmable, they can become part of a broader on-chain economy that is more transparent, configurable, and accessible to accredited investors in eligible jurisdictions.”
