KAIO, a regulated tokenization firm in Abu Dhabi, announced on Monday that it has raised $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 repeat investors like Further Ventures and Laser Digital. The round also saw participation from earlier backers, including Brevan Howard Digital.
KAIO is developing infrastructure that enables asset managers to distribute funds on blockchain rails, having already created tokens for products from firms like BlackRock, Brevan Howard, and Hamilton Lane. These tokens are made accessible through blockchain-based systems, allowing for greater ease of use. With this new investment, KAIO plans to expand its offerings to include credit, structured investments, and exchange-traded funds.
The company is also set to launch an on-chain fund in collaboration with Mubadala Capital, an Emirati private equity firm that manages $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. This is significantly lower than the typical thresholds for institutional funds. Tether's involvement in the 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 is often utilized for cross-border transactions, particularly in emerging markets. KAIO seeks to leverage this liquidity to facilitate greater access to investment opportunities.
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, thereby expanding participation in global financial markets.' KAIO's platform is designed with compliance in mind, embedding regulatory frameworks into its system and supporting regulated distribution channels 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.