Mugafi, an AI-driven platform for entertainment intellectual property (IP), has partnered with Avalanche to tokenize films, anime, music, and other media assets. This collaboration allows creators to finance and distribute projects directly onchain.
The initiative will draw from Mugafi’s existing catalog and upcoming films. According to the company, its AI systems, which have been trained on thousands of scripts and story structures, assist in evaluating projects before they are brought onchain for financing.
Mugafi and Avalanche collectively plan to finance over $10 million in entertainment IP. The companies have set a long-term target to exceed $1 billion in annual IP financing throughput.
Avalanche stated that the partnership aims to demonstrate how its network can support large-scale real-world asset issuance. The companies intend to leverage Avalanche’s infrastructure for funding, tracking, and distributing entertainment projects onchain.
Mugafi, which was launched in 2020 in India, is supported by several prominent entertainment and venture investors, including Nexus VP, HashedEM, Netflix, Amazon, and Panorama Studios, among others. Its 2025 release, Kuberaa, achieved $35 million in box office collections and was distributed via Amazon Prime Video.
The collaboration is expected to foster new roles across AI, production, blockchain operations, and compliance. Mugafi projects that this initiative will create more than 1,500 creator and studio opportunities across several regions, including India, North America, Japan, and Korea.
Blockchain in Entertainment and Film
The trend of bringing entertainment IP onchain has been gaining significant momentum for years, embraced by both creators and platforms. Numerous projects are actively exploring tokenization and Web3 rights management solutions.
In September, Animoca Brands partnered with Ibex Japan, the corporate innovation arm of Antler, to launch a Web3 entertainment fund. This fund is specifically focused on bringing Japan’s anime and manga intellectual property onchain, aiming to unlock value from Japan’s largely underutilized IP catalog.
PIP Labs has established itself as a key player in the Web3 IP space through the development of Story Protocol. This is a layer-1 blockchain designed to manage and program intellectual property directly onchain.
Founded in 2022 by Jason Zhao, a former product manager at Google DeepMind, Story Protocol enables creators to tokenize their work. It allows them to record IP onchain and define the terms under which their content can be used, shared, or adapted. This framework is intended to empower rights holders to maintain control over their content and its subsequent use.
In August 2024, PIP Labs successfully raised $80 million in a Series B funding round, led by a16z Crypto and Polychain Capital, to further develop Story Protocol.