In a strategic funding round, KAIO has raised $8 million with the support of Tether and other key investors from the crypto and institutional spheres. This investment brings KAIO's total funding to $19 million, with new participants including Systemic Ventures, and repeat investors such as Further Ventures, Laser Digital, and earlier backers like Brevan Howard Digital.

KAIO is focused on creating infrastructure that enables asset managers to distribute their funds via blockchain, having already tokenized products from major firms like BlackRock, Brevan Howard, and Hamilton Lane, making them accessible through blockchain systems. The company plans to expand its offerings to include credit, structured investments, and exchange-traded funds, with a forthcoming on-chain fund launch in collaboration with Mubadala Capital, an Emirati private equity firm managing $385 billion in assets. By tokenizing institutional funds, KAIO aims to significantly lower the barriers to entry for investors, with minimum investment thresholds as low as $100 for eligible users, far below the typical requirements for institutional investments. Tether's involvement in this venture connects the model to stablecoin liquidity, leveraging USDT's vast $185 billion supply to channel funds into regulated investment products, particularly in emerging markets.

According to Tether CEO Paolo Ardoino, "KAIO's innovative approach opens up new avenues for capital formation and investment, making institutional-grade assets more accessible on-chain and thereby expanding global financial market participation." KAIO's platform is designed with compliance in mind, supporting regulated distribution frameworks in several jurisdictions including Abu Dhabi, the Cayman Islands, and Singapore. To date, the company has tokenized approximately $100 million in assets and processed transactions exceeding $500 million.