Tether Invests in UAE-Based KAIO to Introduce Local Funds to Blockchain

KAIO, a tokenization firm regulated by Abu Dhabi, has announced the successful completion of an $8 million strategic funding round, led by Tether and accompanied by several notable crypto and institutional investors. This move is part of KAIO's mission to develop infrastructure that enables the distribution of traditional funds on blockchain rails. The funding round brings the company's total funding to $19 million, with new investors such as Systemic Ventures joining, and Further Ventures and Laser Digital participating again alongside earlier backers, including Brevan Howard Digital. KAIO is focused on creating tokens of products from prominent firms like BlackRock, Brevan Howard, and Hamilton Lane, making them accessible through blockchain-based systems. The company plans to utilize the investment to expand its offerings to include credit, structured investments, and exchange-traded funds, with the goal of launching an on-chain fund in collaboration with Mubadala Capital, an Emirati private equity firm managing $385 billion in assets. By tokenizing institutional funds, KAIO aims to lower the barriers to entry for investors, with minimum investments starting at $100 for eligible users, significantly lower than the typical thresholds for institutional funds. The involvement of Tether, the issuer of the popular stablecoin USDT, is expected to facilitate the flow of stablecoin liquidity into regulated investment products. According to Tether CEO Paolo Ardoino, KAIO's unique position has the potential to unlock new pathways for capital formation and investment by making institutional-grade assets more accessible on the blockchain. KAIO's platform is designed to embed compliance and support regulated distribution frameworks in various jurisdictions, including 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.