KAIO, a tokenization firm regulated by the Abu Dhabi authorities, has announced the successful completion of an $8 million funding round, backed by Tether and other prominent investors from the crypto and institutional spheres. This strategic investment brings KAIO's total funding to $19 million, with new investors such as Systemic Ventures joining the fold, alongside returning backers like Further Ventures, Laser Digital, and Brevan Howard Digital.
KAIO is focused on creating infrastructure that enables asset managers to distribute their funds on blockchain rails, thereby increasing accessibility. The firm has already tokenized products from major companies like BlackRock, Brevan Howard, and Hamilton Lane, making them available through blockchain-based systems. With this new investment, KAIO plans to expand its offerings to include credit, structured investments, and exchange-traded funds, with a forthcoming on-chain fund launch in collaboration with Mubadala Capital, an Emirati private equity firm with $385 billion in assets under management.
By tokenizing institutional funds, KAIO aims to reduce the barriers to entry for investors, with minimum investment thresholds starting at $100 for eligible users, significantly lower than those typically required for institutional funds. Tether's involvement in this funding round highlights the potential for stablecoin flows to be channeled into regulated investment products, given USDT's widespread use and $185 billion supply. According to Paolo Ardoino, CEO of Tether, KAIO's innovative approach unlocks new pathways for capital formation and investment by making institutional-grade assets more accessible on-chain, thus expanding participation in global financial markets. KAIO's platform is designed with compliance in mind, 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.