Key Highlights
- Tether contributed to KAIO’s $8 million strategic funding round, thus emphasizing the company’s RWA infrastructure initiatives.
- Using this investment, KAIO aims to develop further its platform for on-chain fund distribution.
- Presently, KAIO oversees assets worth $108.5 million and builds the yield-bearing token called Kash.
Tether, the issuer of USDT, has backed Abu Dhabi-regulated tokenization firm KAIO in an $8 million strategic funding round. The move highlights Tether’s continued push towards real-world asset (RWA) infrastructure and its commitment to integrating traditional finance with blockchain technology.
According to KAIO’s official announcement, the funding round also involved contributions from Systemic Ventures, bringing KAIO’s total amount to $19 million. Other investors include Further, Brevan Howard, and Karatage. KAIO said the latest funding will help accelerate the development of its on-chain fund distribution platform and support expansion into additional asset categories.
Commenting on the investment, Tether CEO Paolo Ardoino said, “KAIO’s unique position unlocks new pathways for capital formation and investment by bringing institutional-grade assets on-chain and making them more broadly accessible, helping expand participation in global financial markets.”
Meanwhile, KAIO CEO Shrey Rastogi added, “KAIO has proved institutional funds work on-chain. This raise accelerates our distribution capabilities and expansion into other on-chain capital markets instruments across structured products, credit, and ETFs.”
Focus on institutional funds
KAIO’s core offering centers on providing exposure to “blue-chip” funds through tokenization. The platform currently manages $108.5 million in assets under management. In February 2026, KAIO launched a waitlist for its yield-bearing token, Kash.
The token is designed to give investors access to an array of funds that have been curated by prominent global asset managers like BlackRock, Hamilton Lane, and Laser Digital. Additionally, KAIO also has another product coming up from Mubadala Capital.
Unlike traditional tokenization models, where single assets are being tokenized, KAIO has chosen a different approach. Instead of tokenizing specific assets, KAIO seeks to tokenize the exposure of institutional-grade funds.
Backing for stablecoin infrastructure
Beyond RWA infrastructure, Tether has also been active in supporting broader stablecoin ecosystems. It recently participated in a $134 million funding round for Stablecoin Development Corp. (NYSE American: SDEV), a public company focused on connecting traditional financial markets with stablecoin infrastructure.
That round, which closed in January 2026, also included backing from R01 Fund LP, Framework Ventures, and Sky Frontier Foundation.
Broader context
With this latest funding, KAIO is positioned to scale its platform, onboard additional asset managers, and introduce new products. The partnership reflects growing institutional interest in tokenized finance and the convergence of stablecoin ecosystems with traditional asset management.
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