Tether supports Abu Dhabi-registered tokenization company KAIO in an $8 million funding round to bring Emirati capital on-chain
The Abu Dhabi-regulated firm develops infrastructure to distribute institutional funds on blockchain networks, reducing the entry barrier for investors.
Key Points:
— Abu Dhabi-regulated tokenization company KAIO has secured $8 million in a strategic funding round led by Tether and other crypto and institutional investors, bringing its total funding to $19 million.
— KAIO develops infrastructure that enables asset managers to tokenize and distribute institutional funds on blockchains, packaging products from firms such as BlackRock, Brevan Howard and Hamilton Lane with minimum investments starting at $100.
— The company plans to expand into credit, structured products and ETFs, launch an on-chain fund with Mubadala Capital, and channel USDT stablecoin liquidity into regulated investment products, while managing about $100 million in assets and having processed more than $500 million in transactions.
Abu Dhabi-registered tokenization company KAIO announced Monday that it had raised $8 million in a strategic funding round backed by Tether and several other crypto and institutional investors, as it builds infrastructure to bring traditional funds onto blockchain rails.
The round brings KAIO’s total funding to $19 million. New investors include Systemic Ventures, while Further Ventures and Laser Digital joined again alongside earlier backers such as Brevan Howard Digital.
KAIO said it develops infrastructure that allows asset managers to distribute funds on-chain. It packages products from firms like BlackRock, Brevan Howard and Hamilton Lane, then makes them accessible through blockchain-based systems.
With the investment, KAIO plans to expand into other products such as credit, structured investments and exchange-traded funds. The firm said it plans to launch on-chain fund with Mubadala Capital, the Emirati private equity firm with $385 billion in assets under management.
By creating tokens of institutional funds, the firm said its goal is to lower investor barriers to entry. KAIO targets minimum investments starting at $100 for eligible users, far below the typical thresholds for institutional funds.
Tether’s involvement ties the model to stablecoin flows. USDT is the most popular stablecoin, boasting a $185 billion supply, and is often used to move money across borders, especially in emerging markets. KAIO aims to channel that liquidity into regulated investment products.
«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,» Tether CEO Paolo Ardoino said in a statement.
KAIO said its platform embeds compliance into its system and supports regulated distribution frameworks, including those in Abu Dhabi, the Cayman Islands and Singapore.
The company said it manages about $100 million in assets and has processed more than $500 million in transactions.