In a strategic move to bring traditional funds onto blockchain, KAIO, a tokenization firm based in Abu Dhabi, has announced the successful completion of an $8 million funding round backed by Tether and other prominent crypto and institutional investors. This latest round brings the company's total funding to $19 million, with new investors such as Systemic Ventures joining the fold, alongside returning investors like Further Ventures, Laser Digital, and Brevan Howard Digital. KAIO's primary objective is to create infrastructure that enables asset managers to distribute their funds on the blockchain, thereby increasing accessibility and reducing the typical high entry barriers associated with institutional investments. The firm has already tokenized products from major companies like BlackRock, Brevan Howard, and Hamilton Lane, making them available through blockchain systems.
With this new investment, KAIO plans to expand its offerings to include credit, structured investments, and exchange-traded funds, with a notable collaboration with Mubadala Capital to launch an on-chain fund. By tokenizing institutional funds, KAIO aims to significantly lower the minimum investment threshold, starting at $100 for eligible users, in contrast to the much higher typical thresholds. The involvement of Tether, the issuer of the widely-used stablecoin USDT, is set to leverage stablecoin flows, directing liquidity into regulated investment products.
According to Paolo Ardoino, CEO of Tether, KAIO's approach has the potential to unlock 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 key jurisdictions such as 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, marking significant milestones in its mission to bridge traditional finance with blockchain technology.