In a strategic funding round, KAIO, a tokenization firm based in Abu Dhabi, has successfully raised $8 million with the support of Tether and several 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 returning investors like Further Ventures, Laser Digital, and Brevan Howard Digital. KAIO is dedicated to creating infrastructure that enables asset managers to distribute funds on the blockchain, having already tokenized products from notable firms like BlackRock, Brevan Howard, and Hamilton Lane, making them accessible through blockchain-based systems. The firm plans to utilize this investment to expand its offerings into credit, structured investments, and exchange-traded funds, including the launch of an on-chain fund in collaboration with Mubadala Capital, an Emirati private equity firm managing $385 billion in assets.
By tokenizing institutional funds, KAIO seeks to reduce barriers to entry for investors, with minimum investments starting at $100 for eligible users, significantly lower than typical thresholds 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 in moving money across borders, particularly in emerging markets. According to Tether CEO Paolo Ardoino, "KAIO's unique approach unlocks new pathways for capital formation and investment by bringing institutional-grade assets on-chain and making them more broadly accessible, thus expanding participation in global financial markets." KAIO's platform is designed to embed compliance into its system, supporting 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.