KAIO, a tokenization firm regulated by Abu Dhabi, has announced the successful completion of an $8 million strategic funding round, backed by Tether and other prominent crypto and institutional investors. This investment brings KAIO's total funding to $19 million, with new investors including Systemic Ventures, and repeat investments from Further Ventures, Laser Digital, and earlier backers like Brevan Howard Digital. KAIO is focused on developing infrastructure that enables asset managers to distribute funds on the blockchain. The company has created tokens for products from renowned firms such as 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 partnership with Mubadala Capital, a private equity firm from the UAE with $385 billion in assets under management.
By tokenizing institutional funds, KAIO aims to reduce the barriers to entry for investors. The company offers minimum investments starting at $100 for eligible users, significantly lower than the typical thresholds for institutional funds.
Tether's involvement in this funding round highlights the potential for stablecoin flows to be channeled into regulated investment products. As the most widely used stablecoin, USDT boasts a $185 billion supply and is often utilized for cross-border transactions, particularly in emerging markets. KAIO seeks to leverage this liquidity to facilitate access to regulated investment products.
"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," stated Paolo Ardoino, CEO of Tether. KAIO's platform is designed to embed compliance into its system, supporting regulated distribution frameworks in Abu Dhabi, the Cayman Islands, and Singapore. The company has tokenized approximately $100 million in assets and processed over $500 million in transactions.