KAIO, a regulated tokenization firm in Abu Dhabi, announced on Monday that it has secured $8 million in strategic funding from Tether and other prominent investors in the crypto and institutional spaces. This investment brings KAIO's total funding to $19 million, with new investors including Systemic Ventures and returning backers such as Further Ventures, Laser Digital, and Brevan Howard Digital.
KAIO is focused on creating infrastructure that allows asset managers to offer their funds on the blockchain, making them more accessible to a broader range of investors. The firm has already tokenized products from major asset management companies like BlackRock, Brevan Howard, and Hamilton Lane. With this new investment, KAIO plans to expand its offerings to include credit, structured investments, and exchange-traded funds, and will launch an on-chain fund in partnership with Mubadala Capital, a 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 just $100 for eligible users.
Tether's involvement in the funding round highlights the potential for stablecoin flows to support the growth of regulated investment products. As the most widely used stablecoin with a supply of $185 billion, USDT is often used for cross-border transactions, particularly in emerging markets.
KAIO seeks to channel this liquidity into regulated investment products, expanding access to global financial markets. According to Tether CEO Paolo Ardoino, "KAIO's innovative approach unlocks new opportunities for capital formation and investment by bringing institutional-grade assets to the blockchain and making them more widely accessible." 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.