BlackRock and Brevan Howard have officially launched tokenized versions of their investment funds on the Sei blockchain, marking a significant leap in the adoption of blockchain technology by traditional financial institutions. The move comes as part of a broader initiative led by KAIO, an on-chain infrastructure provider focused on regulated real-world assets (RWAs), to expand access to tokenized financial products through high-performance digital networks.
The launch, announced on October 8, 2025, introduces tokenized versions of BlackRock’s ICS US Dollar Liquidity Fund and Brevan Howard’s Master Fund into the Sei ecosystem. This integration leverages KAIO’s institutional-grade infrastructure along with Sei’s fast and efficient blockchain architecture, offering seamless and programmable access to traditionally off-chain investment strategies.
Olivier Dang, KAIO’s Chief Operating Officer, highlighted the importance of this milestone, stating that the initiative represents a foundational step toward building a real-time and programmable financial framework suitable for the evolving landscape of capital markets. By bringing these prominent funds on-chain, KAIO aims to simplify investor access and enhance transparency, efficiency, and composability in financial operations.
Investors can now gain exposure to these esteemed funds by holding KAIO tokens on the Sei blockchain. These tokens serve as digital representations of fund shares, enabling smoother integration with decentralized finance (DeFi) applications and broader financial ecosystems. This approach reduces friction in fund trading and allows for instant settlement, a significant improvement over traditional fund management infrastructures.
The tokenized funds are designed to be low-volatility, secure digital investment products. With programmability and composability at their core, these assets can integrate with stablecoins and other DeFi protocols, making them viable as collateral or as yield-generating components in broader decentralized financial strategies.
Justin Barlow, Executive Director at the Sei Development Foundation, emphasized Sei’s role in this evolution, stating that the partnership with KAIO aligns with Sei’s vision to become the institutional-grade settlement layer for all digital assets. He noted that Sei’s high-performance rails offer a superior user experience for trading tokenized money market funds, compared to traditional methods.
This development follows other significant tokenization initiatives on Sei. Recently, Securitize brought the Apollo Diversified Credit Fund (ACRED) on-chain, which now holds over $15 million in tokenized value, according to RWA data. Additionally, KAIO has previously tokenized funds from Hamilton Lane and Laser Digital, further expanding the range of institutional investment products available on the Sei network.
The rapid growth of the tokenized asset market is reshaping how institutions approach liquidity, transparency, and compliance. As of 2024, the tokenized RWA market has ballooned to over $28 billion, driven by increasing regulatory clarity and demand for more efficient financial instruments. Blockchain’s inherent attributes—such as real-time settlement, immutable records, and smart contract automation—offer compelling advantages over traditional finance.
For asset managers like BlackRock and Brevan Howard, tokenization opens new pathways to distribute their products to a global investor base. It also addresses long-standing inefficiencies in fund administration and investor onboarding, while enabling greater customization and automation in portfolio management.
Furthermore, tokenized funds can be integrated into broader DeFi ecosystems, enabling innovative financial use cases. These include automated yield farming strategies, instant collateralization for loans, and dynamic portfolio rebalancing through smart contracts. As more traditional funds enter the blockchain space, the line between conventional finance and DeFi continues to blur.
Institutional interest in blockchain-based infrastructure is growing as players seek to future-proof their operations and meet evolving client demands. Tokenization not only enhances access and liquidity but also facilitates compliance through programmable rules and transparency baked into the code.
Sei’s architecture is particularly well-suited for this transformation. Its focus on high throughput, low latency, and composability make it an ideal platform for real-world asset settlement. Backed by leading venture capital firms such as Multicoin and Coinbase Ventures, Sei is positioning itself as a key infrastructure layer for the next generation of financial markets.
As regulatory frameworks around tokenized assets continue to mature, more institutions are likely to follow suit. The convergence of traditional financial institutions and blockchain technology is no longer speculative—it’s actively unfolding. With major names like BlackRock and Brevan Howard now fully participating, tokenized finance is poised to move from the periphery into the heart of global capital markets.
Looking ahead, we can expect the tokenized fund market to diversify further. Real estate investment trusts (REITs), private equity vehicles, and even sovereign debt instruments are being explored for blockchain-based representation. Tokenization also allows for fractional ownership, which could democratize access to traditionally exclusive assets and lower barriers for retail investors.
The implications are profound: faster settlement times, reduced administrative costs, 24/7 trading capabilities, and improved auditability. These benefits hold the potential to revolutionize asset management, bridging the gap between legacy finance and the decentralized future.
In summary, the launch of BlackRock and Brevan Howard’s tokenized funds on Sei marks a pivotal moment for institutional adoption of blockchain technology. Through KAIO’s infrastructure, these funds become more accessible, flexible, and compatible with the evolving needs of both investors and financial service providers. As tokenized finance continues to mature, it’s clear that we are witnessing the early stages of a fundamental shift in how capital flows through global markets.