FinanceShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmail

Tether backs UAE tokenization firm KAIO in $8M funding round to bring Emirati funds onchain

The Abu Dhabi regulated firm build infrastruture to distribute insitutional funds on blockchain rails, lowering entry barrier for investors.

By Krisztian Sandor|Edited by Nikhilesh De Apr 20, 2026, 2:19 p.m. Make preferred on Abu Dhabi skyline (Shutterstock)

What to know:

• Abu Dhabi-regulated tokenization firm KAIO raised $8 million in a strategic round led by Tether and other crypto and institutional investors, bringing its total funding to $19 million.
• KAIO builds infrastructure that lets asset managers tokenize and distribute institutional funds on blockchains, packaging products from firms such as BlackRock, Brevan Howard and Hamilton Lane with minimum investments starting at $100.
• The company plans to expand into credit, structured products and ETFs, launch an onchain fund with Mubadala Capital, and channel USDT stablecoin liquidity into regulated investment products, while managing about $100 million in assets and having processed more than $500 million in transactions.

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.

TokenizationTetherMore For You

UK gas-investment firm weighs bitcoin mining, draws criticism

By Olivier Acuna|Edited by Sheldon Reback1 hour agoReabold Resources' gas field is so large it could theoretically mine 50,000 BTC, local media said. The firm said it will test bitcoin mining before pivoting to data centers.

What to know:

• Reabold Resources is considering a pilot gas-powered bitcoin mining station at its West Newton A well site in northern England to showcase how its gas reserves could fuel future data centers.
• The company says bitcoin mining would initially help finance further development of the large onshore gas field and serve...

Read full storyLatest Crypto News

Five times President Trump made a statement that moved bitcoin, and why it might happen again this week

36 minutes ago

Bitcoin faces near-term pressure as liquidity tightens, Hilbert Group CIO says

39 minutes ago

UK gas-investment firm weighs bitcoin mining, draws criticism

1 hour ago

Blockchain sleuth accuses RaveDAO of knowing who manipulated the price of its token

1 hour ago

U.S. crypto adoption is rebounding, bitcoin still dominates, Deutsche Bank says

1 hour ago

Kelp DAO claims LayerZero’s 'default' settings are what actually caused the massive $290 million disaster

2 hours agoTop Stories

Coinbase, Bybit said to be working together on tokenization, custody and distribution of U.S. stocks

3 hours ago

Strategy buys 34,164 bitcoin for $2.54 billion, third-largest purchase on record

4 hours ago

Here's how bitcoin's $7.9 billion April options expiry impact prices

6 hours ago

LayerZero blames Kelp's setup for $290 million exploit, attributes it to North Korea's Lazarus

11 hours ago

'DeFi is dead': crypto community scrambles after this year's biggest hack exposes contagion risk

22 hours ago

A $300 million borrowing spike on Aave signals liquidity crunch after KelpDAO exploit

7 hours ago