Abu Dhabi · Coinbase · Tokenization · Wall Street · Fortune Technology
Coinbase backs tokenized version of Abu Dhabi’s sovereign wealth fund
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Tokenization, or the process of turning stocks and other real world assets into digital tokens, is fast bridging the worlds of crypto and mainstream finance, and now sovereign wealth funds want in on the action.
Key facts
- Their market capitalization grew about 400%, reaching roughly $1.7 billion at the end of June, according to a recent report by venture firm a16z crypto
- For Mubadala, which is one of Abu Dhabi’s biggest state-owned funds with nearly $400 billion in assets under management, the tokenization launch will serve to expand its potential pool of investors
- So far, KAIO’s tokenization strategy for the Mubadala fund has drawn about $75 million in capital from a mix of traditional and crypto‑native allocators
- KAIO, which already supports tokenized funds from BlackRock, Brevan Howard, Hamilton Lane and Laser Digital, is touting the Mubadala tie-up as its flagship sovereign‑wealth partnership
Summary
Coinbase will use its Base blockchain as one of the networks the token runs on. For Mubadala, which is one of Abu Dhabi’s biggest state-owned funds with nearly $400 billion in assets under management, the tokenization launch will serve to expand its potential pool of investors. “These are generally deals that are private, hard to access for most retail investors —or even individual investors— without having a relationship with a large private bank,” he told Fortune. Tokenized stocks have helped cement crypto’s foothold on Wall Street over the past year.