TL;DR:
- KAIO raised $8 million in a strategic round led by Tether, bringing its total funding to approximately $19 million.
- The firm tokenizes institutional funds from asset managers such as BlackRock, Brevan Howard and Hamilton Lane. Minimum investments start at $100.
- KAIO manages around $100 million in assets and has processed over $500 million in transactions since its inception.
KAIO, a regulated tokenization firm with a presence in Abu Dhabi, announced the close of an $8 million strategic funding round led by Tether, with participation from crypto and institutional investors. The transaction brings the company’s total funding to $19 million and aims to bring institutional funds to blockchain rails.
Among the new investors is Systemic Ventures, while Further Ventures and Laser Digital rejoined alongside firms such as Brevan Howard Digital. The round is a direct result of the enormous interest generated by the development of infrastructure connecting traditional financial products with cryptocurrency liquidity.
KAIO’s Business Model
KAIO’s business model focuses on building infrastructure that enables asset managers to distribute and tokenize funds on the blockchain. The firm packages products from global asset managers such as BlackRock, Brevan Howard and Hamilton Lane, making them accessible through blockchain-based systems and allowing minimum investments starting at $100, well below the typical thresholds of institutional funds.
USDT Liquidity for Regulated Products
Tether’s participation is key. USDT is the most widely used stablecoin in the market, with a supply exceeding $185 billion, and its use is widespread in cross-border transfers, particularly in emerging markets. KAIO aims to channel that liquidity into regulated investment products, bridging two markets that have historically operated separately.
Paolo Ardoino, chief executive officer of Tether, noted that KAIO “opens new pathways for capital formation and investment by bringing institutional assets onchain and making them more accessible, helping to expand participation in global financial markets.”
The firm also plans to expand into credit, structured products and ETFs. It additionally intends to launch an onchain fund alongside Mubadala Capital, the Emirati private equity vehicle with $385 billion under management. The platform incorporates regulatory compliance natively and operates under the regulatory frameworks of Abu Dhabi, the Cayman Islands and Singapore. It currently manages around $100 million in assets and has processed over $500 million in transactions.
