KAIO, a tokenization firm regulated in Abu Dhabi, has announced the successful completion of an $8 million strategic funding round, led by Tether and supported by various crypto and institutional investors. This investment brings the company's total funding to $19 million, with new investors including Systemic Ventures, and repeat investors such as Further Ventures, Laser Digital, and Brevan Howard Digital. KAIO is focused on creating infrastructure that allows asset managers to distribute their funds on the blockchain. The company has already tokenized products from prominent 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, and is set to launch an on-chain fund in partnership 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 investment amounts 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, USDT boasts a $185 billion supply and is often utilized for cross-border transactions, particularly in emerging markets. KAIO seeks to leverage this liquidity to facilitate investment in regulated products.
According to Tether CEO Paolo Ardoino, "KAIO's unique position unlocks new pathways for capital formation and investment by bringing institutional-grade assets onto the blockchain and making them more broadly accessible, thereby expanding participation in global financial markets." The company's platform is designed to embed compliance and support regulated distribution frameworks, including those in Abu Dhabi, the Cayman Islands, and Singapore. To date, KAIO has tokenized approximately $100 million in assets and processed over $500 million in transactions.