Abu Dhabi-regulated tokenization company KAIO said on Monday it has 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 on the blockchain rails.
This round brings KAIO’s total funding to $19 million. New investors include Systemic Ventures, while Further Ventures and Laser Digital have once again joined previous backers such as Brevan Howard Digital.
KAIO said it is developing infrastructure that allows asset managers to distribute funds on-chain. It aggregates products from companies such as BlackRock, Brevan Howard and Hamilton Lane, then makes them accessible through blockchain-based systems.
With this investment, KAIO plans to expand into other products such as credit, structured investments and exchange-traded funds. The company announced 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 its goal was to lower the barriers to entry for investors. KAIO targets minimum investments starting at $100 for eligible users, well below the usual thresholds for institutional funds.
Tether’s involvement ties 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, particularly in emerging markets. KAIO aims to channel this liquidity into regulated investment products.
“KAIO’s unique position opens new avenues for capital formation and investment by bringing institutional-grade assets online and making them more widely accessible, helping to broaden participation in global financial markets,” Paolo Ardoino, CEO of Tether, said in a statement.
KAIO said its platform integrates compliance into its system and supports regulated distribution frameworks, including those in Abu Dhabi, Cayman Islands and Singapore.
The company said it manages approximately $100 million in assets and has processed more than $500 million in transactions.
