KAIO, a tokenization company regulated by Abu Dhabi, announced on Monday that it has secured $8 million in funding from a strategic investment round led by Tether and other prominent crypto and institutional investors. This investment will be used to build infrastructure that enables the transition of traditional funds to blockchain-based systems.
The funding round brings KAIO's total funding to $19 million, with new investors such as Systemic Ventures and returning investors like Further Ventures and Laser Digital. Existing backers, including Brevan Howard Digital, also participated in the round. KAIO is focused on creating infrastructure that allows asset managers to distribute funds on the blockchain.
The company has developed tokens for products from firms like BlackRock, Brevan Howard, and Hamilton Lane, making them accessible through blockchain-based platforms. With this new investment, KAIO plans to expand its offerings to include credit, structured investments, and exchange-traded funds.
The company also plans to launch an on-chain fund in collaboration with Mubadala Capital, a private equity firm based in the UAE with $385 billion in assets under management. By tokenizing institutional funds, KAIO aims to reduce the barriers to entry for investors, with minimum investment requirements starting at $100 for eligible users. This is significantly lower than the typical thresholds for institutional funds. Tether's involvement in the project connects the model to stablecoin flows, with the goal of channeling liquidity into regulated investment products.
According to Tether CEO Paolo Ardoino, 'KAIO's unique position unlocks new pathways for capital formation and investment by bringing institutional-grade assets on-chain and making them more broadly accessible, helping expand participation in global financial markets.' KAIO's platform incorporates compliance into its system and supports regulated distribution frameworks in various jurisdictions, including Abu Dhabi, the Cayman Islands, and Singapore. The company has tokenized approximately $100 million in assets and has processed over $500 million in transactions.