In a recent strategic funding round, KAIO, a UAE-based tokenization firm, raised $8 million with the support of Tether and other prominent crypto and institutional investors. This investment brings KAIO's total funding to $19 million, with new investors such as Systemic Ventures joining the round, alongside existing backers like Brevan Howard Digital and Further Ventures. KAIO is focused on creating infrastructure that enables asset managers to distribute funds on blockchain rails. The firm has already tokenized products from major companies like BlackRock, Brevan Howard, and Hamilton Lane, making them accessible through blockchain-based systems.
With this new investment, KAIO plans to expand its offerings to include credit, structured investments, and exchange-traded funds. The company is also set to launch an on-chain fund in partnership with Mubadala Capital, a leading 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 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 used for cross-border transactions, particularly in emerging markets.
KAIO's platform is designed to embed compliance into its system 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 accessible, which can help expand participation in global financial markets.'