Tether Backs UAE-Based KAIO to Bridge Institutional Funds and Blockchain

Abu Dhabi-regulated tokenization firm KAIO has secured $8 million in a strategic funding round, bringing its total capital raised to $19 million. The round was backed by Tether alongside institutional investors including Systemic Ventures, Laser Digital, Further Ventures, and Brevan Howard Digital. KAIO develops the underlying infrastructure required for asset managers to distribute funds via blockchain rails. The firm currently packages products from major institutional players such as BlackRock, Brevan Howard, and Hamilton Lane, making them accessible through decentralized systems. With this new capital, KAIO intends to expand its offerings into exchange-traded funds (ETFs), credit, and structured investments. A centerpiece of the firm's growth strategy is a planned on-chain fund launch with Mubadala Capital, an Emirati private equity firm managing $385 billion in assets. By tokenizing these institutional-grade assets, KAIO aims to significantly lower barriers to entry, targeting minimum investments as low as $100 for eligible users. Tether's involvement is expected to link the platform to the massive liquidity of the USDT stablecoin, which currently maintains a $185 billion supply. This integration allows the firm to channel stablecoin flows into regulated investment products across various jurisdictions. Currently, KAIO manages approximately $100 million in assets and has processed more than $500 million in transactions. The platform maintains compliance frameworks across Abu Dhabi, Singapore, and the Cayman Islands to support its regulated distribution model.