Tether Invests in KAIO, a UAE-Based Tokenization Firm, to Facilitate On-Chain Emirati Funds

KAIO, a tokenization firm 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 move is part of KAIO's efforts to build infrastructure that allows traditional funds to be transferred onto blockchain rails. The latest funding brings the company'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 earlier backers including Brevan Howard Digital. KAIO is focused on developing infrastructure that enables asset managers to distribute funds on the blockchain. The company has created tokens for products from firms such as BlackRock, Brevan Howard, and Hamilton Lane, making them accessible through blockchain-based systems. With this 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, an 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, significantly lower than the typical thresholds for institutional funds. Tether's involvement in the project connects the model to stablecoin flows, with USDT, the most widely used stablecoin, boasting a $185 billion supply, often utilized for cross-border transactions, especially in emerging markets. KAIO seeks to channel this 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 embeds compliance into its system and supports regulated distribution frameworks, including those in Abu Dhabi, the Cayman Islands, and Singapore. The company has tokenized approximately $100 million in assets and has processed over $500 million in transactions.