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- Tether joins $8M KAIO round, raising total funding to $19M with key investors.
- KAIO tokenizes fund exposure, managing $108.5M across curated institutional assets.
- A $134M stablecoin round links traditional markets with blockchain infrastructure.
Tether has backed Abu Dhabi-regulated tokenization firm KAIO in an $8 million strategic funding round, highlighting its continued focus on real-world asset infrastructure and integration of traditional finance with blockchain systems across global markets.
As per the official announcement, KAIO claimed that Systemic Ventures is part of the round. The increase increased the total funding to 19 million. Other investors are Further, Brevan Howard, and Karatage.
The company explained that the capital will hasten its on-chain fund distribution platform. It will also facilitate the diversification into other types of assets.
KAIO Model Focuses on Institutional Fund Tokenization
Paolo Ardoino, the CEO of Tether, stated that KAIO establishes new avenues of capital formation. He noted that institutional-grade assets can be brought on-chain and made accessible.
He further stated that it could increase the involvement in the international financial markets. KAIO CEO Shrey Rastogi commented that the increase enhances distribution capacity. He further added that it facilitates growth in structured products, credit, and ETFs.
The main model of KAIO is devoted to the exposure of institutional funds’ tokenization. This is unlike methods of tokenizing individual assets.
The platform has a total of $108.5 million of assets under management. It provides access to blue-chip funds that are being managed by large asset managers. These are BlackRock, Hamilton Lane, and Laser Digital.
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Tether Boost Aligns With KAIO Yield Token Strategy
In February 2026, KAIO opened a waitlist to its yield-earning token, Kash. The product will provide investors with various curated funds.
The company has also been planning another product that is related to Mubadala Capital. It claimed that this structure would help to increase investor involvement in on-chain markets.
Tether has also increased operations in stablecoin infrastructure. It took part in a $134 million investment in Stablecoin Development Corp.
The publicly traded company aims at bridging the traditional financial markets with stablecoin systems. The round closed in January 2026. It also included R01 Fund LP, Framework Ventures, and Sky Frontier Foundation.
This funding will enable KAIO to expand its platform and invite more asset managers. It also intends to launch new products. The collaboration indicates the increase in institutional interest in tokenized finance and convergence with conventional asset management.
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