Mugafi Teams Up with Avalanche to Tokenize Entertainment Intellectual Property

Mugafi, an AI-driven platform focused on entertainment intellectual property (IP), has formed a partnership with Avalanche to tokenize various media assets, including films, anime, and music. This collaboration allows creators to directly finance and distribute their projects on the blockchain.

Key Takeaways

Mugafi partners with Avalanche to tokenize entertainment IP for financing and distribution.
The partnership aims to exceed $1 billion in annual IP financing throughput.
Mugafi’s AI systems evaluate projects before financing on blockchain.
The collaboration includes a broad international scope with 1,500 anticipated creator opportunities.

AI-powered studio Mugafi partners with Avalanche to tokenize entertainment IP

The initiative will draw on Mugafi's existing catalogue and its upcoming films. The company's AI systems, which have been trained on thousands of scripts and story structures, are designed to evaluate projects before they are brought onto the blockchain for financing.

Mugafi and Avalanche aim to finance over $10 million in entertainment IP, with a long-term goal of surpassing $1 billion in annual IP financing throughput. Avalanche noted that this partnership will showcase how its network can effectively handle large-scale issuance of real-world assets. The plans include utilizing Avalanche's infrastructure to fund, track, and distribute entertainment projects on the blockchain.

_Mugafi’s Kuberaa film. Source:_Mugafi

Founded in 2020 in India, Mugafi is supported by multiple entertainment and venture investors, including Nexus VP, HashedEM, Netflix, Amazon, and Panorama Studios. Its upcoming release, Kuberaa, has already generated $35 million in box office collections and is being distributed through Amazon Prime Video.

The announcement of this collaboration indicates a commitment to support new roles across various sectors, such as AI, production, blockchain operations, and compliance. Mugafi anticipates creating over 1,500 opportunities for creators and studios across regions such as India, North America, Japan, and Korea.

The Role of Blockchain in Entertainment and Film

The movement to bring entertainment IP onto the blockchain has been gaining traction among creators and platforms for several years. Numerous projects are now exploring the possibilities of tokenization and Web3 rights management.

In September, Animoca Brands partnered with Ibex Japan (Antler's corporate innovation branch) to introduce a Web3 entertainment fund aimed at moving Japan's anime and manga IP onto the blockchain. This initiative seeks to unlock value from Japan’s largely underutilized IP assets.

Another significant player, PIP Labs, is making waves in the Web3 IP sector with its Story Protocol, a layer-1 blockchain designed to manage and program intellectual property on the blockchain.

Web3, Intellectual Property, Web3 Decentralization Initiatives _IP registered on Story between March and June 2025. Source:_Story Foundation

Founded in 2022 by former Google DeepMind product manager Jason Zhao, the Story Protocol enables creators to tokenize their work, record IP on the blockchain, and define the terms for its use, sharing, or adaptation. This framework is designed to help rights holders maintain control over their content and how it is utilized downstream.

In August 2024, PIP Labs secured $80 million in a Series B funding round led by a16z Crypto and Polychain Capital to further develop the capabilities of Story Protocol.

This exploration of blockchain technology within the entertainment industry highlights an exciting shift towards decentralization and creator empowerment in IP management.