KAIO, a tokenization firm regulated by Abu Dhabi, announced on Monday that it secured $8 million in funding from Tether and other crypto and institutional investors. This investment is part of its initiative to facilitate the integration of traditional funds into blockchain technology.
With this new round of funding, KAIO’s total capital raised now amounts to $19 million. The funding round welcomed Systemic Ventures as a fresh investor, while Further Ventures and Laser Digital continued their support along with previous backers such as Brevan Howard Digital.
The firm specializes in developing infrastructure that enables asset managers to distribute funds on blockchain platforms. KAIO packages products from established companies like BlackRock, Brevan Howard, and Hamilton Lane for access via blockchain systems.
With the new investment, KAIO aims to broaden its product offerings to include credit, structured investments, and exchange-traded funds (ETFs). The company has announced plans to launch an onchain fund in collaboration with Mubadala Capital, the Emirati private equity giant managing $385 billion.
KAIO’s strategy involves tokenizing institutional funds to reduce entry barriers for investors by offering minimum investments starting at just $100. This is significantly lower than traditional thresholds for such funds.
Tether’s participation connects this model with stablecoin dynamics. As the most popular stablecoin, USDT has a circulating supply of $185 billion and is frequently used for cross-border transactions, particularly in emerging markets. KAIO intends to direct this liquidity into regulated investment vehicles.
“KAIO’s unique position unlocks new pathways for capital formation and investment by bringing institutional-grade assets onchain and making them more broadly accessible, helping expand participation in global financial markets,” Tether CEO Paolo Ardoino remarked.
KAIO’s platform integrates compliance within its system and supports distribution frameworks that are regulated, including those in Abu Dhabi, the Cayman Islands, and Singapore. The company reports managing approximately $100 million in assets and having processed over $500 million in transactions.