KAIO Brings $3B in Funds On-Chain to Hedera, Boosting RWA Tokenization
KAIO, the Abu Dhabi-based infrastructure provider for regulated real-world assets (RWAs), is accelerating the tokenization...
Quick overview
- KAIO is accelerating the tokenization of institutional funds on the Hedera blockchain, onboarding three major funds.
- The newly tokenized funds include the Laser Digital Carry Fund, BlackRock ICS US Dollar Liquidity Fund, and Brevan Howard Master Fund, available only to accredited investors.
- Tokenization on Hedera enhances liquidity, transparency, and efficiency in fund management, with benefits like instant settlement and reduced costs.
- The initiative signals significant institutional adoption of blockchain finance, potentially transforming access to traditional funds for accredited investors.
KAIO, the Abu Dhabi-based infrastructure provider for regulated real-world assets (RWAs), is accelerating the tokenization of institutional funds on the Hedera blockchain. According to a press release shared with crypto.news, the company has onboarded three major funds onto the Hedera network, as institutional interest in blockchain-based fund management grows.
The new on-chain offerings are:
- Laser Digital Carry Fund (LCF)
- BlackRock ICS US Dollar Liquidity Fund
- Brevan Howard Master Fund
These tokenized funds are only available to accredited and institutional investors, as KAIO focuses on regulated, high-value financial products.
Florent Jouanneau, Tokenization Lead at Laser Digital, said, “Bringing LCF on-chain via KAIO using Hedera allows us to leverage the network’s enterprise-grade infrastructure and growing adoption in real-world asset tokenization.” This is a big win for Hedera as the leading platform for secure, scalable on-chain fund structures.
Institutional Adoption Drives On-Chain Growth
The addition of these funds follows Hedera’s efforts to integrate real-world financial assets into blockchain ecosystems. Tokenization allows institutional investors to access traditional funds through digital tokens, increasing liquidity, transparency and efficiency.
Key benefits of Hedera-based tokenization:
- Instant settlement of fund transactions
- Reduced administrative costs and intermediaries
- Regulatory compliance for institutional investors
Archax previously deployed token contracts on Hedera for multiple money market funds, including those from BlackRock, Fidelity and State Street. Analysts estimate this could bring billions of dollars in tokenized RWAs onto the network, solidifying Hedera’s position as the bridge between traditional finance and blockchain.
Market Impact and Future Outlook
The addition of BlackRock’s USD Liquidity Fund and other tokenized funds via KAIO is a big sign of large-scale institutional adoption of blockchain-based finance. This could be a precedent for other regulated asset managers looking for efficient, secure and transparent fund structures.
With KAIO’s initiative, Hedera now supports more tokenized funds, which could increase trading volume and investor engagement on-chain. As adoption grows, tokenized RWAs will become the new normal in institutional finance, a bridge between digital and traditional markets and access for accredited investors worldwide.
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