Key Takeaways
- • KAIO closed an $8 million strategic funding round led by Tether and Systemic Ventures, bringing total capital raised to $19 million and positioning the Abu Dhabi-based firm to scale tokenized institutional fund distribution on blockchain networks.
- • The platform has already tokenized approximately $100 million in assets and processed over $500 million in transactions, demonstrating institutional adoption of on-chain investment products from managers including BlackRock, Brevan Howard, and Hamilton Lane.
- • Capital will fund expansion into credit products, structured investments, and exchange-traded funds, while KAIO plans to launch an on-chain fund with Mubadala Capital and channel USDT stablecoin flows into regulated investment products.
- • KAIO's model reduces minimum investment barriers in institutional funds—offering entry points as low as $100 versus traditional minimums—while operating under compliance frameworks in Abu Dhabi, the Cayman Islands, and Singapore.
- • Tether's participation reflects strategic alignment around USDT infrastructure for cross-border capital markets, with the stablecoin commanding $187.92 billion in market capitalization as a settlement mechanism for tokenized finance.
Summary
KAIO, an Abu Dhabi-based infrastructure provider for tokenized investment products, has secured $8 million in a strategic funding round co-led by Tether and Systemic Ventures. The raise brings the firm's total funding to $19 million, following an approximately $11 million seed round closed in July 2025. Additional participants included existing backers Further Ventures, Laser Digital, and Brevan Howard Digital, alongside prior investors Lyrik Ventures, Karatage, and Shorooq Partners.
The capital infusion reflects growing institutional appetite for blockchain-based fund distribution and Tether's strategic positioning within tokenized finance infrastructure. According to CEO Shrey Rastogi, "KAIO has proven institutional funds work onchain. This raise accelerates our distribution capabilities and expansion into other onchain capital markets instruments across structured products, credit and ETFs." The fresh capital will directly fund expansion into structured products, credit instruments, and exchange-traded funds, while KAIO prepares to launch a dedicated on-chain fund in partnership with Mubadala Capital.
KAIO's platform tokenizes and distributes institutional-grade investment products—including offerings from BlackRock, Brevan Howard, and Hamilton Lane—through blockchain-based systems, dramatically lowering traditional entry barriers. The company currently offers minimum investment sizes starting at $100, compared to substantially higher minimums in conventional institutional fund access. To date, KAIO has tokenized approximately $100 million in assets and processed more than $500 million in transactions, demonstrating institutional-grade operational scale.
Tether's participation directly links KAIO's expansion to stablecoin-driven capital markets infrastructure. The company intends to channel USDT flows into regulated investment products, positioning Tether's stablecoin—which commands $187.92 billion in market capitalization—as critical settlement infrastructure for tokenized institutional finance. KAIO's compliance framework spans Abu Dhabi, the Cayman Islands, and Singapore, enabling regulated distribution across multiple jurisdictions and addressing institutional requirements for cross-border capital mobility.
The capital infusion reflects growing institutional appetite for blockchain-based fund distribution and Tether's strategic positioning within tokenized finance infrastructure. According to CEO Shrey Rastogi, "KAIO has proven institutional funds work onchain. This raise accelerates our distribution capabilities and expansion into other onchain capital markets instruments across structured products, credit and ETFs." The fresh capital will directly fund expansion into structured products, credit instruments, and exchange-traded funds, while KAIO prepares to launch a dedicated on-chain fund in partnership with Mubadala Capital.
KAIO's platform tokenizes and distributes institutional-grade investment products—including offerings from BlackRock, Brevan Howard, and Hamilton Lane—through blockchain-based systems, dramatically lowering traditional entry barriers. The company currently offers minimum investment sizes starting at $100, compared to substantially higher minimums in conventional institutional fund access. To date, KAIO has tokenized approximately $100 million in assets and processed more than $500 million in transactions, demonstrating institutional-grade operational scale.
Tether's participation directly links KAIO's expansion to stablecoin-driven capital markets infrastructure. The company intends to channel USDT flows into regulated investment products, positioning Tether's stablecoin—which commands $187.92 billion in market capitalization—as critical settlement infrastructure for tokenized institutional finance. KAIO's compliance framework spans Abu Dhabi, the Cayman Islands, and Singapore, enabling regulated distribution across multiple jurisdictions and addressing institutional requirements for cross-border capital mobility.
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