In a recent strategic funding round, KAIO raised $8 million with the support of Tether and other prominent crypto and institutional investors. This investment brings the company's total funding to $19 million, with new investors such as Systemic Ventures joining existing backers like Brevan Howard Digital and Further Ventures.
KAIO is focused on developing infrastructure that enables asset managers to distribute their funds via blockchain, having already created tokens for products from major firms like BlackRock, Brevan Howard, and Hamilton Lane. The company plans to utilize the investment to expand its offerings to include credit, structured investments, and exchange-traded funds, as well as launch 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 barriers to entry for investors, with minimum investments starting at $100 for eligible users.
The involvement of Tether, the issuer of the popular stablecoin USDT, is expected to facilitate the flow of liquidity into regulated investment products. 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.' The company's platform prioritizes compliance, supporting regulated distribution frameworks in key jurisdictions such as Abu Dhabi, the Cayman Islands, and Singapore. To date, KAIO has tokenized approximately $100 million in assets and processed over $500 million in transactions.