In a strategic funding round led by Tether and supported by various crypto and institutional investors, KAIO has raised $8 million to further its mission of bringing traditional funds onto blockchain rails. This investment brings the company's total funding to $19 million, with new investors such as Systemic Ventures joining the fold, alongside returning backers like Further Ventures, Laser Digital, and Brevan Howard Digital. KAIO is focused on creating infrastructure that enables asset managers to distribute funds on-chain, having already tokenized products from notable firms like BlackRock, Brevan Howard, and Hamilton Lane.
The company plans to utilize this investment to expand its offerings to include credit, structured investments, and exchange-traded funds, with the goal of launching an on-chain fund in collaboration with Mubadala Capital, a leading 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.
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. KAIO's platform is designed to embed compliance and support regulated distribution frameworks, including those 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.
According to Tether CEO Paolo Ardoino, 'KAIO's innovative approach unlocks new pathways for capital formation and investment by bringing institutional-grade assets on-chain and making them more broadly accessible, thereby expanding participation in global financial markets.'