Abu Dhabi-regulated tokenization firm KAIO said 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 onto blockchain rails.
The round brings KAIO’s total funding to $19 million. New investors include Systemic Ventures, while Further Ventures and Laser Digital rejoined, along with previous backers such as Brevan Howard Digital.
KAIO said it is developing infrastructure that enables asset managers to distribute funds on the chain. It packages products from firms such as BlackRock, Brevan Howard and Hamilton Lane and then makes them available 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 onchain funds 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 qualified users, well below the typical thresholds for institutional funds.
Tether’s involvement ties the model to stablecoin flows. USDT is the most popular stablecoin, boasting a supply of $185 billion and is often used to move money across borders, especially in emerging markets. KAIO aims to channel this liquidity into regulated investment products.
“KAIO’s unique position unlocks new avenues for capital formation and investment by bringing institutional-grade assets on-chain and making them more widely available, helping to 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.
