Brevan Howard-Backed Tokenization Firm Expands Funds to Sei as RWA Momentum Grows

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coindesk
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2 months ago


KAIO, the tokenization firm backed by Brevan Howard and Nomura Bank's crypto-focused Laser Digital, is bringing its tokenized funds to the Sei network (SEI) as real-world asset demand is expanding.

The firm, formerly known as Libre Capital, has issued over $200 million in assets, including token versions of feeder funds of Brevan Howard, Hamilton Lane, Laser Digital and a BlackRock funds, with plans to expand access to additional strategies. The tokens, available to institutional and accredited investors, allow for onchain subscription, redemption and reporting.

The Sei Network, built for high-speed financial transactions, provides the underlying rails for execution. KAIO's expansion follows ARK-backed tokenization firm Securitize introducing the $112 million Apollo Diversified Credit Fund, a tokenized feeder fund of Apollo's private credit vehicle, to Sei.

The announcement highlights a growing trend in tokenized real-world assets (RWAs), where traditional investments like bonds, credit and funds are represented as digital tokens. The process promises faster settlements, around-the-clock trading and potential to integrate with smart contracts and plug into decentralized finance (DeFi). Industry estimates project the total addressable market for tokenized RWAs in the trillions of dollars.

With KAIO's integration with Sei, starting with tokens representing shares in the BlackRock ICS US Dollar Liquidity Fund and Brevan Howard Master Fund, will let investors use tokens within DeFi applications as collateral, liquidity reserves or yield-bearing assets, offering more flexibility in how institutional capital moves onchain.

Justin Barlow, executive director of the Sei Development Foundation, framed Kaio's expansion as a key milestone for Sei toward its ambition to "become the institutional settlement layer for all digital assets."

"By using the Sei Network, we’re bringing composable access to leading fund strategies entirely onchain," Olivier Dang, COO of KAIO, said in a statement. "It’s the foundation for real-time, programmable, financial infrastructure built for the next era of capital markets."

Read more: 'Tokenization Is Going to Eat the Entire Financial System' Says Robinhood CEO


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