Kaia Partners With Mochi Operator Xylo Labs to Expand On-Chain RWA Ecosystem

Kaia said July 16 that it signed a strategic partnership with Xylo Labs, the company behind stablecoin asset-management platform Mochi.

Under the memorandum of understanding, the companies plan to integrate Xylo's asset-management services with the Kaia network and broaden cooperation in real-world asset, or RWA, investing.

Kaia has been expanding an on-chain financial ecosystem built around stablecoins. Through the partnership, it aims to add Mochi's RWA-based asset allocation and management capabilities to the Kaia network and build an on-chain asset-management framework that allows stablecoins to be diversified across a range of real-world-backed assets.

Mochi is an asset-management platform that implements Bridgewater's All Weather strategy using RWAs. The approach diversifies across assets to navigate different economic conditions, including changes in growth and inflation. It offers conservative, balanced and aggressive products based on investor risk appetite. The platform uses on-chain RWA tokens with established market track records in live portfolios.

The companies will also cooperate on RWA investing. Through Kaia Investment Partners, or KIP, its subsidiary focused on institutional investment and incubation, Kaia plans to provide Xylo with access to high-quality real-world asset opportunities. Xylo is also discussing participating as an investor in RWA products launched by KIP. The plan is to diversify the underlying assets in Mochi-managed portfolios and create a structure linking real-world asset products and capital between the two companies.

The partnership is part of Kaia's strategy this year to expand investor access to high-quality global assets and funds. Under that plan, KIP sources real-world assets to provide the foundation for on-chain financial products, while Mochi turns them into asset-management offerings aimed at improving investor access.

Kaia has recently been expanding its on-chain finance business around stablecoins and RWAs. It has onboarded yen stablecoin JPYC to its mainnet, joined the Japan Security Token Association, or JSTA, and launched KIP, which has introduced institutional RWA products including private-credit-based Yield8.

Kaia Foundation Chairman Seo Sang-min said Kaia is pursuing end-to-end on-chain financial infrastructure where real-world assets are issued, settled and traded on-chain. He added that the partnership will expand investor access to high-quality real-world assets and strengthen the transparency and trust underpinning the on-chain asset ecosystem.

Xylo Labs Chief Executive Officer Lim Cheon-woon called Kaia an ideal partner with strong stablecoin and RWA infrastructure. He said integration with the Kaia ecosystem will broaden access to proven real-world-asset-backed products and continue to expand the breadth and depth of the portfolio.