Tether Supports UAE-Based KAIO in $8 Million Funding Round to Introduce Emirati Assets to the Blockchain

KAIO, a tokenization firm regulated by Abu Dhabi, announced on Monday that it has secured $8 million in a strategic funding round led by 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 round, alongside returning investors like Further Ventures, Laser Digital, and Brevan Howard Digital. KAIO is focused on creating infrastructure that enables asset managers to distribute their funds on the blockchain. The company has already developed tokens for products offered by 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. The company is also set to launch an on-chain fund in partnership with Mubadala Capital, a private equity firm from the UAE 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 funding round highlights the potential for stablecoin flows to be channeled into regulated investment products. As the most widely used stablecoin with a supply of $185 billion, USDT is often utilized for cross-border transactions, particularly in emerging markets. KAIO seeks to leverage this liquidity to support 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 is designed to embed compliance into its system and support 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.