Abu Dhabi-based tokenization firm KAIO announced on Monday that it has secured $8 million in strategic funding from investors including Tether, marking the firm's total funding at $19 million. The funding round saw participation from new investors such as Systemic Ventures, as well as returning investors like Further Ventures, Laser Digital, and Brevan Howard Digital.
KAIO specializes in developing infrastructure that enables asset managers to distribute their funds on the blockchain. The company has successfully tokenized products from prominent firms like BlackRock, Brevan Howard, and Hamilton Lane, making them accessible through blockchain-based systems. With the newly acquired funds, KAIO plans to expand its product offerings to include credit, structured investments, and exchange-traded funds. The firm is set to launch an on-chain fund in collaboration with Mubadala Capital, a private equity firm with $385 billion in assets under management.
By tokenizing institutional funds, KAIO aims to reduce 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, a leading stablecoin provider, is expected to facilitate the flow of stablecoin liquidity into regulated investment products. According to Tether CEO Paolo Ardoino, KAIO's innovative approach unlocks new pathways for capital formation and investment by bringing institutional-grade assets onto the blockchain and making them more accessible.
KAIO's platform is designed with compliance in mind, supporting 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.