Report Date: October 9, 2025 Source: AIXBT MCP Top Projects
Securitize launches tokenized fund products integrating BlackRock's $2.82B BUIDL fund and $4.63B RWA portfolio on Sei blockchain for DeFi applications, following $11M seed funding led by LaserDigital and partnership with Tether co-founder on GENIUS Act-aligned digital dollar initiative.
KAIO represents a significant player in the rapidly evolving tokenized real-world asset (RWA) space, positioning itself as institutional-grade infrastructure for bringing regulated traditional finance products fully onchain. The protocol, formerly known as Libre Capital, has achieved notable traction with over $200 million in tokenized assets issued and is backed by major institutional players including Brevan Howard and Nomura Bank's crypto-focused arm, Laser Digital[4].
On October 8, 2025, KAIO announced a major expansion by integrating its tokenized fund offerings onto the Sei Network, marking a pivotal moment in institutional blockchain adoption[2][4]. This launch brings tokenized versions of the BlackRock ICS US Dollar Liquidity Fund—one of the largest institutional money market funds—and the Brevan Howard Master Fund to Sei's high-performance blockchain infrastructure[1][2]. The integration enables 24/7 onchain access to these traditionally restricted institutional products, with real-time settlement and programmable financial infrastructure capabilities[3].
The expansion follows a broader industry trend, with KAIO's move coming shortly after ARK-backed Securitize introduced Apollo's $112 million Diversified Credit Fund to the Sei network, demonstrating growing momentum for Sei as an institutional settlement layer[4].
KAIO has built purpose-built protocol infrastructure specifically designed for RWAs, ensuring seamless movement, compliance, and liquidity in decentralized finance environments[2]. The platform merges traditional security frameworks with DeFi agility, embedding KYC and AML protocols directly into its compliant framework for seamless institutional onboarding[3].
The integration with Sei Network is strategically significant. Sei operates as a Layer 1 blockchain designed for fast, cheap financial transactions, combining Ethereum's security and reliability with Solana-like performance[2]. Sei has processed billions of transactions across more than 70 million wallets and has become the number one EVM chain by active users, backed by top-tier investors including Multicoin, Jump, Coinbase Ventures, and Circle Ventures[2].
KAIO's tokenized fund ecosystem includes exposure to several major institutional vehicles. Beyond the BlackRock ICS US Dollar Liquidity Fund and Brevan Howard Master Fund now available on Sei, the platform has previously issued token versions of feeder funds from Hamilton Lane, Laser Digital, and additional BlackRock products[4]. These tokenized assets serve multiple functions within the crypto ecosystem—they can be integrated into stablecoin architectures, deployed as collateral in DeFi applications, or utilized as yield-bearing reserves[1][2].
With over $200 million in assets tokenized to date[4], KAIO has established itself as a leading infrastructure provider in a market that industry estimates project could reach into the trillions of dollars for tokenized RWAs[4].
The backing from Brevan Howard, one of the world's premier macro hedge funds, and Laser Digital (Nomura Bank's crypto division) provides KAIO with both institutional credibility and strategic distribution channels[4]. The partnership with BlackRock, the world's largest asset manager, further validates the platform's institutional-grade infrastructure and compliance capabilities.
According to Olivier Dang, KAIO's COO, the Sei integration represents "the foundation for real-time, programmable, financial infrastructure built for the next era of capital markets"[2][4]. Justin Barlow, Executive Director at the Sei Development Foundation, positioned this integration as a critical step toward Sei's ambition to become "the institutional settlement layer for all digital assets"[2][4].
KAIO's tokenized funds address several key institutional pain points. The platform enables onchain subscription, redemption, and reporting for institutional and accredited investors[4], streamlining treasury operations and reducing operational friction[3]. The tokens provide secure, low-volatility digital investment products while maintaining programmability and composability[2].
The infrastructure supports multiple DeFi integration scenarios: tokenized funds can serve as collateral in lending protocols, function as liquidity reserves in decentralized exchanges, or act as yield-bearing assets in treasury management strategies[4]. This flexibility unlocks more sophisticated capital allocation strategies for institutional participants while maintaining compliance with regulatory frameworks.
Several factors warrant careful consideration. The tokenized RWA space remains nascent with evolving regulatory frameworks, and KAIO's tokens are restricted to institutional and accredited investors, limiting retail participation[4]. The platform's success depends heavily on maintaining regulatory compliance across multiple jurisdictions while navigating uncertain regulatory landscapes for digital assets.
Additionally, the concentration of partnerships with specific institutional players (Brevan Howard, Laser Digital) creates both opportunities and dependencies. While these relationships provide credibility and distribution, they also tie KAIO's fortunes to the strategic priorities of these large institutions.
The integration with Sei Network, while technologically promising, also introduces blockchain-specific risks including smart contract vulnerabilities, network performance dependencies, and the relative newness of Sei compared to more established blockchain infrastructures.
KAIO operates at the intersection of two major trends: institutional adoption of blockchain technology and the tokenization of traditional financial assets. The platform's institutional-grade infrastructure, backed by credible financial institutions, positions it well to capture growth in the RWA tokenization market. The multi-trillion dollar total addressable market projection for tokenized RWAs suggests substantial upside potential for early infrastructure providers like KAIO[4].
However, investors should recognize this remains an emerging sector with execution risks, regulatory uncertainties, and significant competition from both traditional financial institutions building their own tokenization capabilities and other crypto-native RWA protocols. The platform's success will depend on its ability to scale asset tokenization, maintain regulatory compliance, and establish network effects through DeFi integrations and institutional adoption.
Citations: [1] https://www.cryptowisser.com/news/kaio-expands-tokenized-offerings-on-sei/ [2] https://www.prnewswire.com/news-releases/blackrock-and-brevan-howard-tokenized-funds-launch-on-sei-network-via-kaios-institutional-grade-infrastructure-302577795.html [3] https://coincentral.com/blackrock-and-brevan-howard-join-kaios-tokenized-fund-ecosystem-on-sei/ [4] https://www.coindesk.com/business/2025/10/08/brevan-howard-backed-tokenization-firm-expands-funds-to-sei-as-rwa-momentum-grows [5] https://cryptorank.io/news/feed/68c67-blackrock-and-brevan-howard-funds-go-live-on-sei-network-via-kaio [6] https://blog.sei.io [7] https://www.kaito.ai
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