In a strategic funding round, Abu Dhabi-based KAIO has raised $8 million with the support of Tether and 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 fold, alongside returning investors like Further Ventures, Laser Digital, and Brevan Howard Digital.
KAIO specializes in developing infrastructure that allows asset managers to distribute funds on the blockchain. The company has created tokens for products from major firms like BlackRock, Brevan Howard, and Hamilton Lane, making them accessible through blockchain-based systems.
With this new investment, KAIO plans to expand its offerings to include credit, structured investments, and exchange-traded funds, with the goal of launching an on-chain fund in partnership with Mubadala Capital, a 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.
Tether's involvement in this funding round highlights the potential for stablecoin flows to be channeled into regulated investment products, with USDT being the most widely used stablecoin, boasting a $185 billion supply. 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 is designed with compliance in mind, supporting regulated distribution frameworks in 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.