In Brief
Animoca Brands announces strategic partnership and equity investment in GROW Digital Wealth.
The partnership aims to create a hybrid platform offering both cryptocurrency and traditional financial products in Asia.
The platform will cater to family offices and ultra high net worth clients, integrating modern tech and regulatory standards.
Strategic Partnership for Financial Innovation
Animoca Brands has entered into a strategic partnership with GROW Investment Group to enhance financial services by incorporating both crypto and traditional investment opportunities. This collaboration involves an up to 15 percent equity investment in GROW Asset Management (HK) Limited, soon to be rebranded as GROW Digital Wealth. The partnership, defined by a completed term sheet, is pending final documentation and regulatory approvals to proceed.
Building a Regulated Digital Wealth Platform
Plans are in motion to develop GROW Digital Wealth into a pioneering platform in Asia. This platform will combine cryptocurrency assets and traditional financial products within a single regulated framework. This initiative targets family offices and ultra-high net worth individuals, equipping independent financial advisors with cutting-edge technology and institutional-grade products. GROW Digital Wealth is well-equipped with Type 1, Type 4, and Type 9 licenses from the Hong Kong Securities and Futures Commission, allowing it to deal in securities, advise on securities, and manage assets.
Integrating Crypto and Traditional Finance
The collaboration between Animoca Brands and GROW aims to integrate a variety of assets into the GROW Digital Wealth platform. Animoca will bring in crypto assets, including real-world assets, while GROW will continue to provide its curated traditional investment products. This dual approach allows advisors to offer access to both digital and conventional assets through one compliant portal, reflecting the growing trend toward alternative investments while adhering to stringent regulatory norms.
Targeting Asia’s Expanding Wealth Market
The partnership strategically positions itself to capture the burgeoning wealth management market in Asia, particularly in China. With the country sporting a large population of high net worth individuals and trillions in investable assets, there is a marked shift towards global and alternative investment strategies. Both companies plan to not only develop new investment products but also engage in educational efforts regarding the synergy of decentralized and traditional finance.
Equity Investment and Strategic Alignment
As part of the transaction, Animoca Brands intends to acquire up to a 15 percent equity stake in GROW Digital Wealth. This investment aligns the long-term interests of both firms as they develop their joint platform. Alan Lau, Chief Business Officer of Animoca Brands, emphasized the significance of this partnership, stating, “Hong Kong is emerging as an important hub for regulated digital asset activity in Asia. By partnering with GROW, we aim to connect our Web3 and RWA initiatives with a licensed wealth management platform to further expand access to digital assets.”
William Ma, Founding Partner and Global Chief Investment Officer at GROW, also highlighted the transformative potential of the venture, stating, “We believe the world of wealth management is on the cusp of drastic change with decentralization and disintermediation being two disruptive powerful forces. The successful wealth management models of the near future will be those that combine the best of both traditional and digital offerings, with the strongest alignment of interest to clients by technology.”
