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

Mugafi, an AI-driven platform for entertainment intellectual property (IP), has partnered with Avalanche to tokenize films, anime, music and other media assets, allowing creators to finance and distribute projects directly onchain.

The initiative will draw from Mugafi’s catalog and upcoming films. According to the company, its AI systems, trained on thousands of scripts and story structures, help evaluate projects before they are brought onchain for financing.

Mugafi and Avalanche plan to finance more than $10 million in entertainment IP. The companies said their long-term target is to exceed $1 billion in annual IP financing throughput.

Avalanche said the partnership aims to demonstrate how its network can support large-scale real-world asset issuance. The companies plan to use Avalanche’s infrastructure to fund, track and distribute entertainment projects onchain.

Mugafi, launched in 2020 in India, is backed by several entertainment and venture investors, including Nexus VP, HashedEM, Netflix, Amazon and Panorama Studios, among others. Its 2025 release, Kuberaa, recorded $35 million in box office collections and was distributed via Amazon Prime Video.

According to the announcement, the collaboration is expected to support new roles across AI, production, blockchain operations and compliance. Mugafi projects more than 1,500 creator and studio opportunities across several regions including India, North America, Japan and Korea.

Blockchain in entertainment and film

The push to bring entertainment IP onchain has been gathering momentum for years among both creators and platforms, with several projects exploring tokenization and Web3 rights management.

In September, Animoca Brands partnered with Ibex Japan, the corporate innovation arm of Antler, to launch a Web3 entertainment fund focused on bringing Japan’s anime and manga IP onchain. The initiative aims to unlock value from Japan’s largely underutilized IP catalog. 

PIP Labs has emerged as a major player in the Web3 IP space with the development of Story Protocol, a layer-1 blockchain designed to manage and program intellectual property onchain. 

Founded in 2022 by former Google DeepMind product manager Jason Zhao, the project enables creators to tokenize their work, record IP onchain, and set the terms under which it can be used, shared or adapted. The framework is intended to help rights holders maintain control over their content and its downstream use.

In August 2024, PIP Labs raised $80 million in a Series B round led by a16z Crypto and Polychain Capital to advance Story Protocol.