KAIO, a tokenization firm based in Abu Dhabi, has successfully raised $8 million in a funding round led by Tether, alongside other prominent crypto and institutional investors. This strategic investment brings KAIO's total funding to $19 million, with new participants including Systemic Ventures and returning investors such as Further Ventures and Laser Digital. The firm is dedicated to creating infrastructure that enables asset managers to distribute their funds via blockchain, having already tokenized products from major companies like BlackRock, Brevan Howard, and Hamilton Lane. With this investment, KAIO plans to expand its offerings to include credit, structured investments, and exchange-traded funds, and is set to launch an on-chain fund in collaboration with Mubadala Capital, an Emirati private equity firm with $385 billion in assets under management.

By tokenizing institutional funds, KAIO seeks to reduce the barriers to entry for investors, with minimum investments starting at $100 for eligible users. Tether's involvement in the project is expected to facilitate the integration of stablecoin flows, with the goal of channeling liquidity into regulated investment products. According to Tether CEO Paolo Ardoino, KAIO's innovative approach has the potential to unlock new pathways for capital formation and investment by making institutional-grade assets more accessible. KAIO's platform prioritizes compliance, supporting regulated distribution frameworks in jurisdictions such as Abu Dhabi, the Cayman Islands, and Singapore.

To date, the company has tokenized approximately $100 million in assets and processed over $500 million in transactions.