Tether Invests in UAE-Based KAIO, a Tokenization Firm, to Bring Local Funds onto the Blockchain

KAIO, a tokenization firm regulated by Abu Dhabi, has announced the successful completion of an $8 million funding round, with Tether and several other prominent crypto and institutional investors participating. This strategic funding round brings KAIO's total funding to $19 million, with new investors such as Systemic Ventures joining, alongside returning investors Further Ventures, Laser Digital, and earlier backers including Brevan Howard Digital. KAIO is focused on creating infrastructure that enables asset managers to distribute their funds on the blockchain. The firm has already tokenized products from renowned companies like BlackRock, Brevan Howard, and Hamilton Lane, making them accessible through blockchain-based systems. With this investment, KAIO plans to expand its offerings to include credit, structured investments, and exchange-traded funds. The company is 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 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 this funding round highlights the potential for stablecoin flows to be channeled into regulated investment products. As the most widely used stablecoin, USDT, with a supply of $185 billion, is often utilized for cross-border transactions, particularly in emerging markets. KAIO seeks to leverage this liquidity to facilitate access to 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 on-chain and making them more broadly accessible, helping expand participation in global financial markets.' KAIO's platform is designed to embed compliance into its system, 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.