KAIO, a tokenization firm regulated by Abu Dhabi, has announced the successful completion of an $8 million strategic funding round, backed by prominent investors including Tether. This investment brings the company's total funding to $19 million, with new investors such as Systemic Ventures joining existing backers like Brevan Howard Digital and Further Ventures. KAIO's primary focus is on creating infrastructure that enables asset managers to distribute their funds on blockchain rails, thereby increasing accessibility.

The company has already tokenized products from notable firms such as BlackRock, Brevan Howard, and Hamilton Lane, making them available through blockchain-based systems. With this new funding, KAIO plans to expand its offerings to include credit, structured investments, and exchange-traded funds, including the launch of 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 significantly lower the barriers to entry for investors, with minimum investment thresholds starting at $100 for eligible users. The involvement of Tether, the issuer of the popular stablecoin USDT, is set to tap into the vast liquidity of stablecoin flows, channeling it into regulated investment products.

According to Tether CEO Paolo Ardoino, KAIO's innovative approach unlocks new pathways for capital formation and investment, making institutional-grade assets more accessible and expanding participation in global financial markets. KAIO's platform is designed with compliance in mind, supporting regulated distribution frameworks in key 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.