In a recent strategic funding round, KAIO, a regulated tokenization firm in Abu Dhabi, raised $8 million with backing from 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 investors such as Further Ventures and Laser Digital. The firm is focused on creating infrastructure that enables asset managers to distribute funds on the blockchain. KAIO has successfully tokenized products from major 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 company aims to launch an on-chain fund in partnership with Mubadala Capital, a leading Emirati private equity firm with $385 billion in assets under management. By tokenizing institutional funds, KAIO seeks to lower the barriers to entry for investors, with minimum investments starting at $100 for eligible users. This is significantly lower than the typical thresholds for institutional funds.

Tether's involvement in the funding round highlights the potential for stablecoin flows to be channeled into regulated investment products. As the most popular stablecoin with a $185 billion supply, USDT is often used for cross-border transactions, particularly in emerging markets.

KAIO aims to leverage this liquidity to expand access to regulated investment products. According to Tether CEO Paolo Ardoino, "KAIO's innovative approach unlocks new opportunities for capital formation and investment by bringing institutional-grade assets on-chain and making them more widely accessible, thereby expanding participation in global financial markets." KAIO's platform is designed with compliance in mind, supporting regulated distribution frameworks in 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.