Tether Supports UAE-Based KAIO in $8 Million Funding to Introduce Emirati Assets to the Blockchain

KAIO, a tokenization firm regulated by Abu Dhabi, announced on Monday that it has secured $8 million in strategic funding from Tether and several other investors from the crypto and institutional spheres. This funding aims to support the development of infrastructure that enables the transition of traditional funds to blockchain. The total funding for KAIO now stands at $19 million, with new investors such as Systemic Ventures joining, alongside returning investors like Further Ventures and Laser Digital, as well as earlier backers including Brevan Howard Digital. KAIO is focused on creating infrastructure that allows asset managers to distribute their funds on the blockchain. The firm has developed tokens for products from companies like BlackRock, Brevan Howard, and Hamilton Lane, making these accessible through blockchain-based systems. With this new investment, KAIO plans to expand its offerings to include credit, structured investments, and exchange-traded funds, with the goal of launching an on-chain fund in collaboration with Mubadala Capital, an Emirati private equity firm managing $385 billion in assets. By tokenizing institutional funds, KAIO aims to lower the barriers to entry for investors, with minimum investment requirements starting at $100 for eligible users, significantly lower than the typical thresholds for institutional funds. Tether's involvement in this funding round highlights the potential for stablecoin flows to support this model. As the most widely used stablecoin with a supply of $185 billion, USDT often facilitates cross-border transactions, particularly in emerging markets. KAIO seeks to leverage this liquidity to channel it into regulated investment products. According to Tether CEO Paolo Ardoino, 'KAIO's unique approach unlocks new pathways for capital formation and investment by bringing institutional-grade assets onto the blockchain and making them more accessible, thus expanding participation in global financial markets.' KAIO's platform incorporates compliance and supports regulated distribution frameworks in several jurisdictions, including Abu Dhabi, the Cayman Islands, and Singapore. The company has tokenized approximately $100 million in assets and has processed transactions worth over $500 million.