UAE's Mubadala to pursue private equity fund tokenization…partners with KAIO

The United Arab Emirates (UAE) sovereign wealth fund Mubadala is entering the private equity fund tokenization market together with real-world asset (RWA) infrastructure firm KAIO.

KAIO said on the 9th (local time) that it will collaborate with Mubadala Capital to explore approaches to accessing the private equity fund tokenization market. Mubadala Capital is a Mubadala subsidiary focused on alternative asset management.

Specifically, KAIO and Mubadala Capital said they will seek ways to raise institutional and accredited investors' accessibility to the tokenized private market. Mubadala Capital explained, "This partnership is part of an ongoing effort to expand access to institutional investment strategies through secure and innovative financial infrastructure."

The industry sees the partnership as a potential catalyst for growth in the RWA industry. Cointelegraph said, "This move shows growing interest in using tokenized RWAs as a distribution channel for existing alternative assets," adding, "It is an important step in increasing the global accessibility of one of the Middle East's largest asset managers alongside the digitization of fund structures."

Meanwhile, the RWA market has grown explosively this year. According to RWAxyz, excluding stablecoins, the global RWA market size stood at US$18.1 billion as of earlier this month, nearly a 230% increase from US$5.5 billion at the end of last year. Crypto investment firm CoinShares said in a recent report that this growth is expected to continue next year.