KAIO, a tokenization firm regulated by Abu Dhabi, has announced that it has secured $8 million in a strategic funding round led 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 returning investors such as Further Ventures and Laser Digital. KAIO's goal is to create infrastructure that enables asset managers to distribute funds on the blockchain. The firm has successfully tokenized products from major 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 firm is also set to 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 the funding round highlights the potential for stablecoin flows to be channeled into regulated investment products. As the most widely used stablecoin with a $185 billion supply, USDT is often utilized for cross-border transactions, particularly in emerging markets.
According to Tether CEO Paolo Ardoino, 'KAIO's unique position unlocks new pathways for capital formation and investment by bringing institutional-grade assets on-chain and making them more broadly accessible, thus expanding participation in global financial markets.' KAIO's platform is designed to embed compliance into its system and support regulated distribution frameworks in various jurisdictions, including 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.