Abu Dhabi’s Mubadala Capital partners with KAIO to pilot blockchain-based tokenisation of private equity and credit funds, aiming to improve efficiency, liquidity, and investor experience while navigating regulatory challenges.
Abu Dhabi-based Mubadala Capital is testing whether blockchain-driven tokenisation can open its private-market strategies to qualified institutional and accredited investors, the company and industry summaries show. According to the original report, Mubadala has entered a collaboration with KAIO , the rebranded infrastructure platform formerly known as Libre Capital , to assess whether KAIO’s regulated on‑chain systems can represent shares in private equity and credit funds as digital tokens.
The pilot is designed to evaluate whether tokenised fund interests can streamline subscription, redemption and transfer processes while preserving the compliance, legal auditability and oversight expected of traditional fund structures. KAIO describes its protocol as purpose‑built for regulated real‑world assets, combining compliance and blockchain execution so tokens map to legally valid holdings in underlying assets. The company has already brought institutional funds on‑chain and, according to industry summaries, has tokenised more than USD 200 million of institutional assets and launched a tokenised yield product that drew over USD 100 million in commitments. KAIO has also integrated with high‑throughput networks such as Sei and with networks including Hedera to widen institutional distribution.
Mubadala Capital says the exercise could produce operational efficiencies, improve investor onboarding for offshore and cross‑jurisdictional clients, and appeal to investors seeking digital‑asset style liquidity within compliance‑approved frameworks. The move reflects a broader industry push to use tokenisation as a distribution and liquidity layer for alternatives, where traditionally high minimums, long lock‑ups and limited secondary markets have constrained access.
Industry observers note both potential benefits and caveats. Proponents argue tokenisation can reduce paperwork, speed settlement and enable more granular secondary trading. However, industry data shows that meaningful secondary liquidity and robust governance frameworks remain prerequisites for tokenisation to transform access sustainably; legal and regulatory clarity across jurisdictions will also determine uptake. Speaking to market context, prior Mubadala strategic deals , including multi‑billion dollar private credit and origination partnerships with global managers , underline the group’s long‑standing focus on expanding private markets exposure and distribution capabilities.
From KAIO’s perspective, securing collaboration with a heavyweight such as Mubadala Capital represents a milestone for its ambition to adapt legacy fund strategies to Web3‑enabled frameworks. The firm claims institutional trust in its approach, citing prior tokenisation work with established fund managers and the launch of tokenised yield products. For Mubadala, the experiment preserves editorial distance from crypto‑first propositions while testing whether regulated token infrastructure can deliver tangible improvements to private markets operations and investor experience.
As firms proceed from pilots to potential commercial offerings, the outcome will hinge on demonstrable improvements in cost, execution and compliance, and on regulators’ willingness to recognise on‑chain representations of fund ownership. The collaboration between Mubadala Capital and KAIO is therefore likely to be watched closely by institutional investors and fund managers considering whether tokenisation can be a credible distribution layer for alternative assets.
- https://thearabianpost.com/mubadala-capital-eyes-tokenised-private-market-access-via-kaio/ – Please view link – unable to able to access data
- https://www.mubadala.com/en/news/mubadala-and-kkr-enter-strategic-partnership/ – In October 2022, Mubadala Investment Company and KKR announced a strategic partnership to co-invest in private credit opportunities across the Asia Pacific region. The partnership aims to deploy at least US$1 billion in long-term capital, providing bespoke credit solutions to companies and sponsors. This collaboration enhances Mubadala’s presence in the growing APAC credit market and significantly expands KKR’s credit platform and capabilities in the region.
- https://www.prnewswire.com/news-releases/libre-capital-rebrands-to-kaio-launches-100m-tokenized-yield-fund-302517501.html – In July 2025, Libre Capital rebranded to KAIO, marking a significant step in bridging traditional finance with decentralized ecosystems. KAIO launched the tokenized Laser Digital Bitcoin Diversified Yield Fund, a crypto-native solution offering enhanced and compliant yield for Bitcoin holders. Managed by Laser Digital Middle East, the fund secured over $100 million in capital commitments, underscoring institutional trust in KAIO’s infrastructure to blend crypto-native yields with traditional asset management rigor.
- https://www.htx.com/en-in/news/abu-dhabis-mubadala-capital-explores-tokenized-private-marke-f0DPfkHZ/ – Abu Dhabi’s Mubadala Capital has partnered with Kaio, an institutional real-world asset (RWA) infrastructure provider, to explore tokenized access to private market investment strategies. The collaboration aims to assess how Kaio’s digital framework can enable accredited and institutional investors to access Mubadala’s private market products on-chain. This initiative represents a technological upgrade and a new distribution layer for alternative assets, traditionally limited by high investment minimums, long lock-up periods, and geographic restrictions.
- https://www.businesswire.com/news/home/20221023005133/en/Mubadala-and-KKR-Enter-into-a-Strategic-Partnership-to-Invest-in-Private-Credit-in-Asia-Pacific – In October 2022, Mubadala Investment Company and KKR announced a strategic partnership to co-invest in private credit opportunities across the Asia Pacific region. The partnership aims to deploy at least US$1 billion in long-term capital, providing bespoke credit solutions to companies and sponsors. This collaboration enhances Mubadala’s presence in the growing APAC credit market and significantly expands KKR’s credit platform and capabilities in the region.
- https://www.mubadala.com/en/news/apollo-and-mubadala-investment-company-expand-partnership-capitalize-global-origination – In February 2022, Apollo and Mubadala Investment Company expanded their global partnership to capitalize on global origination opportunities. The expansion supports Apollo’s Capital Solutions business to originate transactions across various asset classes and grow product capabilities. It is designed to benefit a wide range of capital needs and meet increasing market demand for expedient and bespoke multi-billion-dollar equity and debt solutions.
- https://cointelegraph.com/news/mubadala-capital-kaio-tokenized-private-markets-rwa – Abu Dhabi-based Mubadala Capital has partnered with institutional real-world asset (RWA) infrastructure provider Kaio to explore tokenized access to private market investment strategies. The collaboration aims to assess how Kaio’s digital framework could enable institutional and accredited investors to access Mubadala Capital’s private market products on-chain. This move signals interest in using RWA tokenization as a technological upgrade and a distribution layer for alternative assets traditionally gated behind high minimums, multi-year lockups, and geographic limits.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
9
Notes:
The narrative is recent, with the earliest known publication date being December 9, 2025. The report is original and not recycled from other sources. The collaboration between Mubadala Capital and KAIO is a new development, indicating high freshness. The article includes updated data and quotes, suggesting a higher freshness score.
Quotes check
Score:
8
Notes:
The quotes from KAIO CEO Shrey Rastogi are consistent across multiple sources, indicating they are not reused from earlier material. No significant variations in wording were found, suggesting the quotes are authentic.
Source reliability
Score:
7
Notes:
The narrative originates from The Arabian Post, which is not widely recognised as a major news outlet. This raises some uncertainty regarding the source’s reliability. However, the information aligns with reports from more established sources like Cointelegraph and PR Newswire, which adds credibility.
Plausability check
Score:
9
Notes:
The claims about Mubadala Capital’s collaboration with KAIO to explore tokenised private-market access are plausible and supported by multiple reputable sources. The narrative lacks excessive or off-topic detail, and the tone is consistent with typical corporate communications.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative is recent and original, with consistent and authentic quotes. While the source’s reliability is somewhat uncertain, the information is corroborated by more established outlets. The claims are plausible and supported by multiple reputable sources. Given these factors, the overall assessment is a pass with medium confidence.