KAIO, a regulated tokenization firm in Abu Dhabi, announced on Monday 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 such as Systemic Ventures and existing ones like Further Ventures and Laser Digital participating alongside earlier backers, including Brevan Howard Digital. KAIO is focused on developing infrastructure that enables asset managers to distribute their funds on blockchain rails. The company has created tokens for products from well-known 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. The firm is also set 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. The company offers minimum investments starting at $100 for eligible users, significantly lower than the typical thresholds for institutional funds.

Tether's involvement in this funding round connects the model to stablecoin flows, given USDT's popularity as a stablecoin with a $185 billion supply, often used for cross-border transactions, especially in emerging markets. KAIO intends to channel this liquidity into regulated investment products. "KAIO's unique approach unlocks new pathways for capital formation and investment by bringing institutional-grade assets on-chain and making them more broadly accessible, thereby expanding participation in global financial markets," stated Tether CEO Paolo Ardoino. KAIO's platform incorporates compliance into its system and supports regulated distribution frameworks in several 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.