Digital token infrastructure firm KAIO, regulated under Abu Dhabi’s financial authority, has secured $8 million in funding from a consortium that includes Tether, one of the world’s leading stablecoin issuers. This latest investment round brings KAIO’s total capital raised to $19 million.
Strategic backing from Tether and industry leaders
Joining Tether in the funding round were Systemic Ventures and past supporters such as Laser Digital and Further Ventures, while digital asset investment heavyweight Brevan Howard Digital renewed its commitment to the project. Tether, as the company behind USDT—the largest stablecoin globally—commands a $185 billion supply in crypto markets and continues to expand its ecosystem.
KAIO’s platform enables asset managers to directly offer their funds to investors on blockchain infrastructure. The company specializes in tokenizing funds from major financial institutions like BlackRock, Brevan Howard, and Hamilton Lane, making them more accessible and transparent by leveraging blockchain technology.
Broader product range and lower investment threshold
With this influx of new funding, KAIO aims to expand beyond traditional funds, planning to bring credit, structured products, and exchange-traded funds (ETFs) onto the blockchain. The company also announced a collaboration with Mubadala Capital, the Abu Dhabi-based private equity firm holding $385 billion in assets, to launch a new on-chain fund—a move seen as pivotal for bringing blockchain-powered products to the institutional sector.
KAIO’s model is designed to make institutional funds accessible at much lower entry points. According to the company, eligible investors will be able to participate with a minimum of $100, representing a significant reduction from the traditionally high buy-in thresholds associated with institutional funds.
Regulatory compliance and transaction volume stand out
KAIO stresses its dedication to legal compliance, fully integrating its platform with regulatory frameworks across Abu Dhabi, the Cayman Islands, and Singapore. The company reports that it has managed $100 million in assets to date and has processed transaction volumes exceeding $500 million.
The platform’s infrastructure is built to accelerate investment opportunities and global market access by tokenizing institutional funds. Tapping into Tether’s liquidity is a central part of KAIO’s business model, particularly in facilitating cross-border transfers in emerging markets.
“KAIO’s unique position allows institutional-grade assets to move onto the blockchain, making these products available to a much wider pool of investors. This approach expands participation in global financial markets and opens the door to new capital formation,” explained Paolo Ardoino, CEO of Tether, as he outlined the rationale behind their strategic investment.
KAIO plans to blend regulatory standards into its system while using innovative strategies to widen access to financial products, aiming for a more democratic investment landscape.
The company believes digitalizing traditional funds could mark a new era for the sector and is focused on diversifying its product offering in the near future.
By streamlining institutional investment processes and leveraging blockchain’s transparency, KAIO hopes to redefine how investors globally engage with major funds.
Access to institutional-quality funds, made possible through blockchain, could lower barriers for a broader segment of investors, increasing inclusivity in global finance.
With ongoing partnerships and investor backing, KAIO positions itself at the forefront of tokenizing traditional assets and shaping the future of blockchain-powered investment services.
