Tether Invests in UAE-Based KAIO to Bring Emirati Funds onto the Blockchain

KAIO, a tokenization firm regulated by Abu Dhabi, has secured $8 million in funding from a strategic round backed by 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 developing infrastructure that allows asset managers to distribute their funds on the blockchain. It has created tokens for 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 firm is also set to 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 reduce the barriers to entry for investors, with minimum investments starting at $100 for eligible users - 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 investment in regulated products. According to Tether CEO Paolo Ardoino, 'KAIO's unique position unlocks new pathways for capital formation and investment by bringing institutional-grade assets onto the blockchain and making them more broadly accessible, which helps 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.