KAIO, a tokenization firm based in Abu Dhabi, has successfully raised $8 million in a funding round led by Tether, along with other prominent crypto and institutional investors. This strategic investment brings KAIO's total funding to $19 million, with new investors such as Systemic Ventures joining the round, alongside returning investors like Further Ventures, Laser Digital, and Brevan Howard Digital. KAIO specializes in developing infrastructure that enables asset managers to distribute their funds on blockchain rails.
The company has created tokens for products from renowned 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, an Emirati private equity firm with $385 billion in assets under management. By tokenizing institutional funds, KAIO aims to significantly lower the barriers to entry for investors, with minimum investments starting at $100 for eligible users, far below the typical thresholds for institutional funds.
Tether's involvement in this funding round highlights the potential for stablecoin flows to be channeled into regulated investment products. As the most widely used stablecoin with a supply of $185 billion, USDT plays a crucial role in facilitating cross-border transactions, particularly in emerging markets. KAIO seeks to leverage this liquidity to expand access to regulated investment products. 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, helping 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.
To date, the company has tokenized approximately $100 million in assets and processed over $500 million in transactions.