KAIO, a tokenization firm regulated by Abu Dhabi, has successfully raised $8 million in a strategic funding round backed by Tether and other prominent crypto and institutional investors. This investment brings KAIO's total funding to $19 million, with new investors including Systemic Ventures and repeat investors such as Further Ventures and Laser Digital. KAIO is focused on creating infrastructure that enables asset managers to distribute funds on the blockchain.
The company has already tokenized products from notable 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, as well as launch an on-chain fund in collaboration with Mubadala Capital, a private equity firm with $385 billion in assets under management.
By tokenizing institutional funds, KAIO aims to lower the barriers to entry for investors, with minimum investments starting at $100 for eligible users. Tether's involvement in this funding round is expected to leverage the stablecoin's vast liquidity, with USDT boasting a $185 billion supply, to channel funds into regulated investment products.
According to Tether CEO Paolo Ardoino, KAIO's innovative approach unlocks new pathways for capital formation and investment by making institutional-grade assets more accessible on the blockchain. 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.