In a strategic funding round, KAIO, a tokenization firm regulated by Abu Dhabi, has raised $8 million with the support of Tether and other prominent crypto and institutional investors. The investment brings KAIO's total funding to $19 million, with new investors such as Systemic Ventures joining, alongside returning investors like Further Ventures and Laser Digital. KAIO's platform enables asset managers to distribute their funds on the blockchain, allowing for the creation of tokens from products offered by companies like BlackRock, Brevan Howard, and Hamilton Lane. These tokens are then made accessible through blockchain-based systems.
The firm plans to utilize the 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 aims to lower the barriers to entry for investors, with minimum investments starting at $100 for eligible users, significantly lower than the typical thresholds for institutional funds. The involvement of Tether, the issuer of the popular stablecoin USDT, ties the model to stablecoin flows, allowing KAIO to channel liquidity into regulated investment products.
According to Tether CEO Paolo Ardoino, KAIO's unique position facilitates new pathways for capital formation and investment by making institutional-grade assets more accessible on the blockchain. The platform embeds compliance into its system, supporting regulated distribution frameworks in various jurisdictions, including Abu Dhabi, the Cayman Islands, and Singapore.
To date, KAIO has tokenized approximately $100 million in assets and processed over $500 million in transactions.