Tokenization has become one of the fastest-growing corners of digital assets as traditional financial firms look to modernize funding infrastructure. Citi recently projected that tokenized securities could grow to approximately $5.5 trillion by 2030, while Boston Consulting Group and Ripple estimate that tokenized assets across asset classes could reach $18.9 trillion by 2033.
Tokenizing existing blockchain-based funds could help expand access to a new set of investors and open the door for fund shares to be used as collateral or connected to other on-chain financial applications.
For this particular case, KAIO provides the infrastructure that issues and manages the Mubadala Capital tokenized fund. The company said Mubadala joins firms 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 based on differentiated access: to transaction flow, to co-investment, to a global network that most investors cannot reach on their own,” Max Franzetti, director of Mubadala Capital Solutions, said in a statement. “Bringing it up-chain 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 corporate balance sheet investment is a reflection of growing interest in tokenized assets regulated as treasury holdings. “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.”
