Tether backs UAE tokenization firm KAIO in $8M funding round to bring Emirati funds onchain
TL;DR
KAIO, a UAE tokenization firm, raised $8 million in funding led by Tether to bring traditional funds onchain. This investment increases KAIO's total funding to $19 million and aims to lower investment barriers for users.
Key points
- KAIO raised $8 million in funding led by Tether
- Total funding for KAIO now stands at $19 million
- Investment aims to bring traditional funds onto blockchain
- KAIO targets minimum investments starting at $100
- Plans to launch onchain fund with Mubadala Capital
Mentioned in this story
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 joined again alongside earlier backers such as Brevan Howard Digital.
KAIO said it develops infrastructure that allows asset managers to distribute funds onchain. It packages products from firms like BlackRock, Brevan Howard and Hamilton Lane, then makes them accessible 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 fund 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 eligible users, far below the typical thresholds for institutional funds.
Tether's involvement ties the model to stablecoin flows. USDT is the most popular stablecoin, boasting a $185 billion supply, and is often used to move money across borders, especially in emerging markets. KAIO aims to channel that 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, helping 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.
Q&A
What is KAIO and what does it do?
KAIO is a tokenization firm regulated in Abu Dhabi that develops infrastructure to bring traditional funds onto blockchain systems.
Who are the investors in KAIO's recent funding round?
The recent funding round was backed by Tether, Systemic Ventures, Further Ventures, Laser Digital, and earlier investors like Brevan Howard Digital.
How does KAIO plan to use the $8 million funding?
KAIO plans to expand its product offerings, including credit and exchange-traded funds, and to launch an onchain fund with Mubadala Capital.
