Tether leads $8M round for Abu Dhabi tokenization startup KAIO as it brings institutional funds onchain Abu Dhabi-regulated tokenization firm KAIO announced Monday it has raised $8 million in a strategic funding round led by Tether alongside a mix of crypto and institutional investors. The infusion brings KAIO’s total capital to $19 million as the startup scales infrastructure to move traditional, institutional funds onto blockchain rails. Investors and traction New backer Systemic Ventures joined the round, while Further Ventures and Laser Digital returned and earlier supporters such as Brevan Howard Digital stayed involved. KAIO says it has already tokenized roughly $100 million in assets and processed more than $500 million in transactions to date. What KAIO does KAIO builds the plumbing that lets asset managers create blockchain tokens representing traditional fund products and distribute them via compliant onchain systems. It has created tokens tied to products from firms including BlackRock, Brevan Howard and Hamilton Lane, and aims to lower investor entry barriers by offering minimum investments starting around $100 for eligible users—well below standard institutional thresholds. Product roadmap and partners With the new capital, KAIO plans to broaden into credit, structured products and exchange-traded funds, and intends to launch an onchain fund with Mubadala Capital—the Abu Dhabi sovereign investor with about $385 billion in assets under management. Tether and stablecoin flows Tether’s participation ties KAIO’s model to stablecoin liquidity. USDT, the most widely used stablecoin, has roughly $185 billion in supply and is commonly used to move capital across borders, particularly in emerging markets. KAIO says it wants to channel some of 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. Regulatory and compliance posture KAIO emphasizes built-in compliance, supporting regulated distribution frameworks in Abu Dhabi, the Cayman Islands and Singapore—positioning itself as a bridge between traditional asset managers and onchain distribution while remaining within regulatory guardrails. Why it matters By tokenizing institutional funds and integrating stablecoin rails, KAIO aims to make traditionally illiquid or high-minimum investments more accessible and faster to move, creating a potential new channel for global capital flows into regulated financial products. Read more AI-generated news on: undefined/news