Abu Dhabi-regulated tokenization firm KAIO announced Monday it has raised $8 million in a strategic funding round led by Tether and other crypto and institutional investors. The firm is building infrastructure to bring traditional funds onto blockchain rails, aiming to significantly lower investor entry barriers.
This latest funding brings KAIO's total raised to $19 million. New investors include Systemic Ventures, with Further Ventures and Laser Digital rejoining alongside prior backers like Brevan Howard Digital.
KAIO develops infrastructure enabling asset managers to distribute funds onchain. It packages products from firms such as BlackRock and Brevan Howard, making them accessible via blockchain systems. The company plans to expand into credit, structured investments, and exchange-traded funds, with an onchain fund launch planned with Mubadala Capital.
By tokenizing institutional funds, KAIO aims to reduce minimum investment thresholds to as low as $100 for eligible users, a stark contrast to traditional institutional fund requirements. Tether's investment highlights the integration with stablecoin flows, specifically USDT, to channel liquidity into regulated investment products.
"KAIO’s unique position unlocks new pathways for capital formation and investment by bringing institutional-grade assets onchain and making them more broadly accessible," stated Tether CEO Paolo Ardoino.
KAIO's platform incorporates compliance features and supports regulated distribution frameworks in Abu Dhabi, the Cayman Islands, and Singapore. The company currently manages approximately $100 million in assets and has processed over $500 million in transactions.