Key Highlights
- Mugafi partners with Avalanche to finance and distribute films, music, anime, and other IP on blockchain.
- AI evaluates projects before tokenization, aiming to fund $10M initially, with $1B annual goal long-term.
- The partnership could also generate more than 1,500 jobs related to AI, production, blockchain operations, and compliance.
Mugafi, an AI-driven platform focused on entertainment intellectual property, has partnered with Avalanche, a blockchain network, to explore new ways of financing and distributing films, music, anime, and other media assets.
It collaborates to bring projects onto the blockchain where they can be traced, funded, and digitally distributed. The platform pre-evaluates creative projects with the help of AI systems trained on thousands of scripts and story structures before their tokenization for financing.
Stage wise funding goals
In its early stage, the partnership plans to finance more than $10 million worth of entertainment IP. Over time, the two companies aim to scale this to over $1 billion in annual IP funding.
Avalanche sees the collaboration as a way to understand whether its blockchain can handle high-volume real-world asset issuance outside the usual crypto use cases.
Mugafi, which started in India in 2020, has support from investors like Netflix, Amazon, HashedEM, and Nexus VP. Its most recent production, Kuberaa, came out in 2025 and reportedly grossed $35 million at the box office. The film was distributed on Amazon Prime Video.
According to Mugafi, the partnership could also generate more than 1,500 jobs related to AI, production, blockchain operations, and compliance. These roles are expected to span multiple regions, including India, North America, Japan, and South Korea.
Expanding the onchain entertainment stack
Global entertainment IP financing is worth more than $2 trillion. Most of this market is controlled by major studios and big investors.
The Mugafi–Avalanche approach aims to make the funding process more transparent and organized. It can help independent or smaller creators access opportunities that were usually limited to large industry players.
Redacted Group will support the effort by managing capital, building institutional partnerships, and developing the platform. Its MVP will offer early access to IP-financing opportunities for the Redacted community, with additional access for select AVAX communities.
Avalanche, which now hosts over $1.2 billion in tokenized real-world assets, will serve as the base layer, enabling clearer documentation, faster settlement, and onchain verification.
Rising interest in onchain IP
The initiative arises from the increasing interest in tokenizing entertainment IP. Other companies, including Animoca Brands and PIP Labs, have also been exploring Web3 tools that help creators manage their rights and bring underused content onchain.
In Japan, Animoca Brands and Ibex Japan launched a fund to onboard anime and manga IP onto the blockchain with the intent to make use of underutilized content by creators while offering the latter a more transparent means to manage their rights.
PIP Labs, founded in 2022 by former Google DeepMind product manager Jason Zhao, built a blockchain-based platform called Story Protocol. It lets creators tokenize their work, register IP on-chain, and determine rules around how it can be used or shared.
This helps the content owner retain control and apply rights consistently. PIP Labs raised $80 million in 2024 to keep building the platform. In 2025, more projects moved onchain as creators increasingly adopted Web3 tools for IP control.
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