Tokenization has become one of the fastest growing digital asset sectors as traditional financial firms seek to modernize fund infrastructure. Citi recently forecast that tokenized securities could reach approximately $5.5 trillion by 2030, while Boston Consulting Group and Ripple estimate that tokenized assets across all asset classes could reach $18.9 trillion by 2033.
Creating blockchain-based tokens of existing funds could help expand access to a new set of investors and open the door to using fund shares as collateral or connecting them to other on-chain financial applications.
For this particular case, KAIO provides the infrastructure that issues and administers Mubadala Capital’s tokenized fund. The company said Mubadala joins companies such as 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 deal flow, to co-investment, to a global network that most investors cannot reach on their own,” Max Franzetti, principal at Mubadala Capital Solutions, said in a statement. “Bringing it online expands 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’s addition of the fund to its investment on the company’s balance sheet reflects growing interest in tokenized assets regulated as treasury securities. “As regulated assets become programmable, they can become part of a broader on-chain economy that is more transparent, composable, and accessible to qualified investors in eligible jurisdictions.”
