Kaia partners with asset management platform Mochi to expand stablecoin use cases

Kaia announced Thursday that it has formed a strategic partnership with Xylo Labs, the operator of Mochi, an on-chain stablecoin asset management platform.

Under the MOU, the two companies plan to integrate Xylo's asset management service into the Kaia network and pursue cooperation in the real-world asset (RWA) investment space.

Mochi is an on-chain asset management platform that automatically diversifies stablecoin deposits across multiple real-world asset classes. Once integrated with the Kaia network, users will be able to access RWA-focused asset allocation services using stablecoins within the Kaia ecosystem.

Mochi implements the All Weather strategy — developed by global hedge fund Bridgewater Associates — using RWA-based instruments. The All Weather strategy distributes investments across multiple asset classes to prevent risk from concentrating in any single asset as economic and inflation conditions shift.

Mochi's products are divided into three risk profiles: conservative, balanced and aggressive. RWA tokens traded on-chain are used in actual portfolio management.

The two companies will also explore ways to identify RWA investment opportunities and incorporate them into product management. Kaia plans to provide Xylo with access to real-world asset investment opportunities through its institutional investment and incubation subsidiary, Kaia Investment Partners (KIP). Xylo is considering participating as an investor in RWA products that KIP structures.

Kaia envisions incorporating real-world assets sourced by KIP into Mochi's portfolio to expand the range of assets under management. KIP will handle asset sourcing and product structuring, while Mochi will package them into asset management products accessible to end users.

Seo Sang-min, chair of the Kaia Foundation, said the company is building an end-to-end on-chain financial infrastructure where real-world assets are issued, settled and traded on-chain. "Through this partnership, we will broaden investment access to high-quality real-world assets and strengthen the transparency and trust foundation of the on-chain asset ecosystem," he said.

Im Cheon-un, CEO of Xylo Labs, said the company will "expand access to proven real-world asset-based products through integration with the Kaia ecosystem and continuously broaden the scope and depth of our portfolio."

Meanwhile, Kaia has recently been expanding its on-chain financial ecosystem with a focus on stablecoins and RWA. The company has introduced the yen-denominated stablecoin JPYC to its mainnet, joined the Japan Security Token Offering Association, and launched Yield8, a private credit-based RWA product, through KIP.