Abu Dhabi-Based KAIO Raises $19M With Tether to Boost Onchain Finance

KAIO has raised a total of $19 million, including a newly announced $8 million strategic round, as it looks to scale infrastructure aimed at bringing institutional investment products onchain.

The latest funding round was backed by Tether and Systemic Ventures, alongside existing investors such as Further and Laser Digital. The raise adds to a roster of backers that already includes Brevan Howard Digital, Lyrik Ventures, Karatage, and Shorooq Partners.

Expanding Onchain Fund Distribution

KAIO plans to use the new capital to accelerate the development of its onchain fund distribution infrastructure, with a focus on expanding access to a broader range of asset classes.

The platform, incubated by Laser Digital, part of Nomura, and WebN Group, is designed to bridge traditional finance and blockchain by distributing curated investment products from leading asset managers directly onchain.

Bridging Institutional Finance and Blockchain

KAIO currently manages around $100 million in assets and has facilitated more than $500 million in cumulative fund transactions since its launch.

Its platform offers exposure to funds from major institutions including BlackRock, Brevan Howard, Hamilton Lane, and Laser Digital, with additional products expected from Mubadala Capital.

According to the company, it is working to lower traditional barriers to entry by targeting minimum investment thresholds as low as $100, potentially widening access to institutional-grade investment opportunities.

Strategic Alignment With Stablecoin Infrastructure

The participation of Tether highlights the growing role of stablecoins as a foundation for global financial flows. With its widely used USDT token, Tether has become a key settlement layer in digital asset markets, particularly in regions with limited access to traditional financial systems.

KAIO’s infrastructure aims to build on this foundation by enabling structured and compliant access to institutional yield opportunities for stablecoin holders, effectively layering investment products on top of existing digital payment rails.

Building Toward Onchain Capital Markets

KAIO’s leadership said the new funding will support expansion beyond fund distribution into additional onchain financial instruments, including structured products, credit, and exchange-traded funds.

It is important to note that the company is headquartered in Abu Dhabi Global Market, where it operates within a regulated framework and integrates compliance standards aligned with international jurisdictions.