Abu Dhabi-based KAIO, a tokenization firm, has announced an $8 million strategic funding round led by Tether, alongside other prominent crypto and institutional investors. This investment brings KAIO's total funding to $19 million, with new investors including Systemic Ventures and returning investors such as Further Ventures and Laser Digital. KAIO is developing infrastructure to enable asset managers to distribute their funds via blockchain, having already created tokens for products from firms like BlackRock and Brevan Howard.
The company plans to expand its offerings to include credit, structured investments, and exchange-traded funds, with a forthcoming on-chain fund launch in partnership with Mubadala Capital. By tokenizing institutional funds, KAIO seeks to lower the barriers to entry for investors, with minimum investments as low as $100. Tether's involvement is expected to facilitate the integration of stablecoin flows, leveraging USDT's $185 billion supply to channel liquidity into regulated investment products.
According to Tether CEO Paolo Ardoino, KAIO's platform will 'unlock new pathways for capital formation and investment' by making institutional-grade assets more accessible. KAIO's platform prioritizes compliance, supporting regulated distribution frameworks in Abu Dhabi, the Cayman Islands, and Singapore, with approximately $100 million in assets tokenized and over $500 million in transactions processed.