In a strategic funding round, KAIO has raised $8 million with the support of Tether and other prominent crypto and institutional investors. This investment brings the company's total funding to $19 million, with new investors including Systemic Ventures and returning investors such as Further Ventures and Laser Digital. KAIO is dedicated to creating infrastructure that enables asset managers to distribute their funds on blockchain rails.
The company has successfully tokenized products from reputable firms like BlackRock, Brevan Howard, and Hamilton Lane, making them accessible through blockchain-based systems. With this new funding, KAIO plans to expand its offerings to include credit, structured investments, and exchange-traded funds.
The company aims to launch an on-chain fund in partnership with Mubadala Capital, an Emirati private equity firm with $385 billion in assets under management. By tokenizing institutional funds, KAIO seeks to lower the barriers to entry for investors, with minimum investments starting at $100 for eligible users. This is significantly lower than the typical thresholds for institutional funds. Tether's involvement in the funding round highlights the potential for stablecoin flows to be channeled into regulated investment products.
As the most widely used stablecoin with a $185 billion supply, USDT is often utilized for cross-border transactions, particularly in emerging markets. KAIO's platform is designed to embed compliance and support regulated distribution frameworks in various jurisdictions, including 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. According to Tether CEO Paolo Ardoino, 'KAIO's innovative approach unlocks new opportunities for capital formation and investment by bringing institutional-grade assets on-chain and making them more broadly accessible, thereby expanding participation in global financial markets.'