KAIO, a tokenization firm regulated by Abu Dhabi, announced on Monday that it has secured $8 million in a strategic funding round backed by Tether and several other prominent crypto and institutional investors. This investment is aimed at building infrastructure to transition traditional funds to blockchain-based systems. The funding round brings KAIO's total investment to $19 million, with new investors including Systemic Ventures and repeat investors such as Further Ventures, Laser Digital, and Brevan Howard Digital. KAIO is focused on developing infrastructure that enables asset managers to distribute their funds on the blockchain.

The company has created tokens for products from renowned 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 firm is also set to launch an on-chain fund in collaboration with Mubadala Capital, a private equity firm from the UAE with $385 billion in assets under management.

By tokenizing institutional funds, KAIO aims to lower the barriers to entry for investors, with minimum investment requirements starting at $100 for eligible users, significantly lower than the typical thresholds for institutional funds. Tether's involvement in this funding round connects the model to stablecoin flows, with the potential to channel liquidity into regulated investment products. According to Tether CEO Paolo Ardoino, 'KAIO's unique position opens up new pathways for capital formation and investment by bringing institutional-grade assets to the blockchain and making them more widely accessible, which helps to expand participation in global financial markets.' KAIO's platform integrates compliance and supports regulated distribution frameworks in several jurisdictions, including Abu Dhabi, the Cayman Islands, and Singapore.

The company has tokenized around $100 million in assets and has processed transactions totaling over $500 million.