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 cryptocurrency and institutional investors as it builds infrastructure to bring traditional funds into the blockchain orbit.
This round brings KAIO’s total funding to $19 million. New investors include Systemic Ventures, Further Ventures and Laser Digital, with early backers including Brevan Howard Digital joining again.
KAIO said it developed the infrastructure to allow asset managers to allocate funds on-chain. It creates tokens for products from companies such as BlackRock, Brevan Howard and Hamilton Lane, and then offers those products through a blockchain-based system.
KAIO plans to expand into other products such as credit, structured investments and exchange-traded funds with this investment. The company said it plans to launch an on-chain fund with Mubadala Capital, a UAE-based private equity firm with $385 billion in assets under management.
By creating institutional fund tokens, the company said it aims to lower the barrier to entry for investors. KAIO targets a minimum investment of $100 for qualified users, well below the typical threshold for institutional funds.
Tether’s participation ties the model to stablecoin flows. USDT is the most popular stablecoin with a supply of $185 billion and is commonly used to move funds across borders, especially in emerging markets. KAIO aims to bring liquidity to regulated investment products.
“KAIO is uniquely positioned to help expand participation in global financial markets by opening up new avenues for capital formation and investment by bringing institutional-grade assets on-chain and making them more widely available,” Tether CEO Paolo Ardoino said in a statement.
KAIO said its platform embeds compliance into its systems and supports regulated distribution frameworks, including those of Abu Dhabi, the Cayman Islands and Singapore.
The company said it has tokenized approximately $100 million in assets and processed more than $500 million in transactions.
