KAIO, a tokenization firm regulated by Abu Dhabi, announced on Monday that it has secured $8 million in a strategic funding round, with Tether and several other prominent crypto and institutional investors participating. This investment brings KAIO's total funding to $19 million, with new investors including Systemic Ventures, and repeat investors such as Further Ventures, Laser Digital, and earlier backers like Brevan Howard Digital. KAIO's primary focus is on creating infrastructure that enables asset managers to distribute funds on the blockchain.
The firm has successfully tokenized products from renowned companies 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 also intends to launch an on-chain fund in collaboration 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 investment requirements starting at $100 for eligible users, significantly lower than the typical thresholds for institutional funds. Tether's involvement in this funding round highlights the potential for stablecoin flows to be integrated into this model. 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 channel this liquidity into regulated investment products. According to Tether CEO Paolo Ardoino, 'KAIO's unique position in the market unlocks new pathways for capital formation and investment by bringing institutional-grade assets onto the blockchain and making them more accessible, which helps expand participation in global financial markets.' KAIO's platform is designed with compliance in mind, supporting regulated distribution frameworks in jurisdictions such as Abu Dhabi, the Cayman Islands, and Singapore.
The company has tokenized approximately $100 million in assets and has processed over $500 million in transactions to date.