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Sovereign Wealth Fund Taps Crypto for Treasury
23 Jul
Summary
- Mubadala Capital partners with Coinbase and KAIO for tokenization.
- This marks a first for a major U.S. public company in treasury management.
- The tokenized fund expands investor access beyond traditional private equity.
Abu Dhabi's Mubadala Capital has partnered with Coinbase and KAIO to launch a blockchain-native, regulated token representing its private markets fund. This collaboration signifies a groundbreaking step, marking the first instance of a major U.S. publicly listed company utilizing regulated tokenized assets for on-chain treasury management. Coinbase's Base blockchain will host the token, with the company also investing in it for its balance sheet. KAIO provides the necessary infrastructure to ensure the token's compliance for eligible investors.
The tokenization of Mubadala's fund, which manages nearly $400 billion in assets, is designed to expand its investor pool. Previously accessible mainly to large private equity firms, the tokenized version aims to democratize access. This strategic move aligns with a broader trend where tokenized assets have seen substantial growth, expanding beyond crypto-native products to include equities and ETFs. Mubadala's initiative, however, centers on a sovereign wealth fund's direct engagement with tokenization, differentiating it from earlier broker and platform-led efforts.
