Quick Take
- Animoca Brands said it signed a term sheet with GROW Investment Group covering a strategic partnership and an intended equity investment.
- The platform, set to be named GROW Digital Wealth, holds Hong Kong SFC Type 1, 4, and 9 licenses, according to the announcement.
- Animoca said it intends to take up to a 15% stake, subject to definitive agreements and approvals.
A Term Sheet for a Regulated Wealth Platform in Hong Kong
Animoca Brands said it entered into a term sheet with GROW Investment Group, described in the announcement as a China focused investment and asset management platform backed by Julius Baer. Under the term sheet, Animoca plans to make an equity investment in GROW Asset Management (HK) Limited, which the companies said will later change its name to GROW Digital Wealth, or GDW.
Animoca said it intends to acquire an equity interest in GDW of up to 15%, subject to definitive agreements and any required approvals.
Crypto and Traditional Products for Family Offices
The companies said the proposed partnership aims to build GDW into one of the first platforms in Asia to offer both crypto and traditional finance investment products to family offices and ultra high net worth individuals. The plan also includes support for independent financial advisors, who would use GDW to offer clients investment products through what the announcement described as an institutional and compliant grade platform.
The announcement said GDW holds Type 1, Type 4, and Type 9 licenses issued by Hong Kong’s Securities and Futures Commission.
Animoca said it plans to introduce crypto assets on GDW, including real world assets. GROW said it will bring curated investment products to the platform. The companies said this would allow advisors to offer both crypto and traditional finance products through GDW.
Market Figures Cited in the Announcement
The announcement pointed to the asset management market in China, citing over 3 million high net worth individuals with investable assets exceeding CNY 127 trillion, described as approximately US$18 trillion. It also said the companies plan educational initiatives tied to what it called increasing convergence between traditional and decentralized finance.
What the Companies Said
Animoca Brands chief business officer Alan Lau said Hong Kong is emerging as an important hub for regulated digital asset activity in Asia, and said the partnership aims to connect Animoca’s Web3 and RWA initiatives with a licensed wealth management platform.
GROW founding partner and global chief investment officer William Ma said wealth management is entering a period of change, and said GROW plans to work with Animoca on the venture.
Animoca’s Broader Footprint
Animoca Brands is active across Web3 and Web3 gaming through projects and investments listed in the announcement, including Moca Network, Open Campus, and The Sandbox. The company also said it has a portfolio of over 600 companies and digital assets.
