Abu Dhabi-regulated tokenization company KAIO said on Monday 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 to the blockchain rails.
The round brings KAIO’s total funding to $19 million. New investors include Systemic Ventures, while Further Ventures and Laser Digital have joined again alongside previous backers such as Brevan Howard Digital.
KAIO said it develops infrastructure that allows asset managers to distribute funds on-chain. It created tokens of products from companies such as BlackRock, Brevan Howard, and Hamilton Lane, and then made 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 an on-chain fund with Mubadala Capital, the Emirati private equity firm with $385 billion in assets under management.
By creating institutional fund tokens, the company said it aims to lower barriers to entry for investors. KAIO targets minimum investments starting at $100 for eligible users, well below typical thresholds for institutional funds.
Tether’s involvement links the model to stablecoin flows. USDT is the most popular stablecoin, with a supply of $185 billion, 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 opens new avenues for capital formation and investment by bringing institutional-grade assets onto the chain and making them more accessible, helping to expand participation in global financial markets,” Tether CEO Paolo Ardoino said in a statement.
KAIO said its platform builds compliance into its system and supports regulated distribution frameworks, including those in Abu Dhabi, the Cayman Islands and Singapore.
The company said it tokenized about $100 million in assets and has processed more than $500 million in transactions.
