Tether joins $8 million strategic funding round in RWA firm Kaio

Kaio, a real-world asset firm that gives users exposure to "bluechip funds," said Monday it has raised $8 million in a fresh strategic round.

Tether, the world's largest stablecoin issuer, and Systemic Ventures participated in the round. Kaio said in blog post it has raised a total of $19 million and its backers include Further, Brevan Howard and Karatage.

"The capital will accelerate Kaio’s onchain fund distribution infrastructure and expansion across asset classes," the firm added.

Tokenizing real-world assets like real estate, money market funds and equities is a means of bridging traditional finance and crypto, giving investors access to familiar assets without having to move their funds off-chain.

In February, Kaio opened a waitlist for its Kash coin, "a yield-bearing token" that gives holders exposure to "a diversified basket of bluechip funds sourced from leading global asset managers including BlackRock, Hamilton Lane, and Laser Digital," according to a post. Kaio said it also has a new product from Mubadala Capital in the pipeline.

"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," Tether CEO Paolo Ardoino said in Kaio's statement.

It was also revealed Monday that Tether took a nearly 2 million-share stake in Bitmain-linked Antalpha, stemming from its 2025 IPO allocation.

According to Kaio's website, it has $108.5 million in assets under management. The company is based in the United Arab Emirates.