In a strategic funding round, KAIO, a tokenization firm based in Abu Dhabi, has raised $8 million with the support of 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 joining the round, alongside existing backers like Brevan Howard Digital and Further Ventures. 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 and Hamilton Lane. The company plans to utilize this investment to expand its offerings into areas such as credit and exchange-traded funds, including the launch of 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 seeks to lower the barriers to entry for investors, with minimum investments starting at $100 for eligible users. This initiative is also tied to stablecoin flows, given Tether's involvement, with the potential to channel liquidity into regulated investment products. According to Paolo Ardoino, CEO of Tether, KAIO's approach unlocks new pathways for capital formation and investment by making institutional-grade assets more accessible on-chain.
The company's platform is designed with compliance in mind, supporting regulated distribution frameworks across multiple 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.