In a strategic funding round, KAIO, a regulated tokenization firm headquartered in Abu Dhabi, has secured $8 million in investments from Tether and other prominent crypto and institutional investors. This investment brings the company's total funding to $19 million, with new investors such as Systemic Ventures and returning investors like Further Ventures and Laser Digital. KAIO's existing backers, including Brevan Howard Digital, also participated in the round. The company specializes in creating infrastructure that enables asset managers to distribute funds on blockchain rails.
It has successfully tokenized products from notable firms like BlackRock, Brevan Howard, and Hamilton Lane, making them accessible through blockchain-based systems. 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, a leading 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 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 integrated into KAIO's model. 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 channel this liquidity into regulated investment products. 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, helping expand participation in global financial markets.' KAIO's platform is designed with compliance in mind, supporting regulated distribution frameworks 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.