Tether Supports UAE-Based KAIO in $8 Million Funding to Onboard Emirati Assets

In a recent development, KAIO, a tokenization firm regulated by Abu Dhabi, announced that it has secured $8 million in funding from a strategic investment round backed by Tether and several other prominent crypto and institutional investors. This move aims to support the company's efforts in creating infrastructure that enables the transition of traditional funds to blockchain-based systems. The latest funding brings KAIO's total funding to $19 million, with new investors such as Systemic Ventures joining in, alongside returning investors like Further Ventures and Laser Digital, as well as earlier backers including Brevan Howard Digital. KAIO's primary focus is on developing infrastructure that allows asset managers to distribute their funds on the blockchain. The company has already created tokens for products from well-established firms like BlackRock, Brevan Howard, and Hamilton Lane, making them accessible through blockchain-based platforms. With the newly acquired investment, KAIO is planning 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, with minimum investments starting at $100 for eligible users, significantly lower than the typical thresholds for institutional funds. Tether's involvement in this project is expected to leverage the stablecoin's vast liquidity, with USDT boasting a $185 billion supply, to channel it into regulated investment products. According to Tether CEO Paolo Ardoino, 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, thus expanding participation in global financial markets. KAIO's platform is designed to embed compliance into its system, supporting regulated distribution frameworks in various jurisdictions, including Abu Dhabi, the Cayman Islands, and Singapore. To date, the company has successfully tokenized approximately $100 million in assets and processed over $500 million in transactions.