Tokenization has become one of the fastest growing corners of digital assets as traditional finance firms seek to modernize fund infrastructure. Citi recently predicted that tokenized securities could grow to around $5.5 trillion by 2030, while Boston Consulting Group and Ripple estimate tokenized assets across all asset classes could reach $18.9 trillion by 2033.
Creating blockchain-based tokens of existing funds can help expand access to a new set of investors and open the door for fund shares to be used as collateral or plugged into other onchain financial applications.
For this particular case, KAIO provides the infrastructure that issues and manages Mubadala Capital’s tokenized fund. The company said Mubadala joins firms including Hamilton Lane, Brevan Howard and Laser Digital that use its platform to distribute on-chain investment products and currently has $144 million in tokenized funds on its platform.
“This strategy was built on differentiated access – to trade 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 expands this 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 corporate balance sheet investment is a reflection of growing interest in regulated tokenized assets like treasury stocks. “As regulated assets become programmable, they can become part of a broader onchain economy that is more transparent, composite and accessible to qualified investors in qualified jurisdictions.”
