KAIO, a tokenization firm regulated by Abu Dhabi, 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 repeat investors like Further Ventures and Laser Digital.
The company's existing backers, including Brevan Howard Digital, also participated in the round. KAIO is focused on creating infrastructure that enables asset managers to distribute funds on blockchain rails, having already tokenized products from companies like BlackRock, Brevan Howard, and Hamilton Lane. The firm plans to utilize this investment to expand its offerings to include credit, structured investments, and exchange-traded funds, as well as 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 lower the barriers to entry for investors, with minimum investments 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 $185 billion supply, USDT is often utilized for cross-border transactions, particularly in emerging markets. KAIO intends to leverage this liquidity to facilitate the growth of regulated investment products.
According to Tether CEO Paolo Ardoino, 'KAIO's unique position enables new pathways for capital formation and investment by bringing institutional-grade assets on-chain and making them more accessible, which helps expand participation in global financial markets.' The company's platform incorporates compliance and supports regulated distribution frameworks in various jurisdictions, including Abu Dhabi, the Cayman Islands, and Singapore. To date, KAIO has tokenized approximately $100 million in assets and processed over $500 million in transactions.