Tether Invests in KAIO's $8 Million Funding Round to Bring Emirati Assets onto the Blockchain

KAIO, a tokenization firm regulated by Abu Dhabi, announced on Monday that it has secured $8 million in a strategic funding round supported by Tether and other prominent crypto and institutional investors. This investment is aimed at developing infrastructure that enables the distribution of traditional funds on blockchain rails. The funding round brings KAIO's total investment to $19 million, with new investors such as Systemic Ventures participating, and Further Ventures and Laser Digital joining again alongside existing backers like Brevan Howard Digital. KAIO is focused on creating infrastructure that allows asset managers to distribute funds on the blockchain. The company has developed tokens for products from 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, a private equity firm from the UAE with $385 billion in assets under management. 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. Tether's involvement in the funding round highlights the potential for stablecoin flows to be integrated into the 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 onto the blockchain and making them more broadly accessible, which helps expand participation in global financial markets." KAIO's platform incorporates compliance into its system and supports regulated distribution frameworks in various jurisdictions, including Abu Dhabi, the Cayman Islands, and Singapore. The company has tokenized approximately $100 million in assets and processed over $500 million in transactions.