Kaio raises $8M led by Tether to tokenise institutional funds

Kaio, the Abu Dhabi-regulated digital-asset platform, raised an $8M funding round led by Tether, lifting its total funding to $19M. The latest round also included Systemic Ventures, while Laser Digital and Further Ventures renewed participation and Brevan Howard Digital joined. Tether CEO Paolo Ardoino said Kaio helps move “institutional-grade assets” on-chain, aiming to expand access to global capital markets. Kaio’s blockchain infrastructure lets asset managers tokenize and distribute fund products from major institutions such as BlackRock, Brevan Howard, and Hamilton Lane, with minimum participation from $100. Regulatory compliance is a core part of the model. Kaio reports integrations across Abu Dhabi, the Cayman Islands, and Singapore, and it is working with Mubadala Capital to launch an on-chain fund. The firm also plans to expand beyond tokenised funds into credit, structured products, and potential ETF-style offerings, with a stated goal of directing USDT liquidity into regulated investment vehicles. For crypto traders, the key takeaway is the continued shift toward stablecoin rails for institutional tokenisation. While this is more about the broader on-chain finance narrative than near-term BTC trading, it can support demand for stablecoin liquidity and reinforce TradFi-to-crypto market infrastructure.