Hong Kong gaming and investment giant Animoca Brands is seeking to buy up to 15% of the Hong Kong arm of Chinese asset manager GROW Investment Group as it steps up a push into investment management and taps the region’s booming wealth market.
Under the term sheet, Animoca will make an equity investment in GROW Asset Management (HK), which will be renamed GROW Digital Wealth, and operate a platform in Asia offering crypto and traditional investments to family offices and ultra-high-net-worth individuals (UHNWIs), according to a press release.
Focus on wealthy
“By partnering with GROW, we aim to connect our and RWA initiatives with a licensed wealth management platform to further expand access to digital assets. Together we intend to explore compliant, technology‑driven ways to bring new asset classes and structures to family offices and independent advisors in the region,” said Alan Lau, Chief Business Officer of Animoca.
As part of the proposed transaction, Animoca Brands intends to acquire an equity interest in GROW Digital Wealth of up to 15% “subject to definitive agreements and any required approvals,” according to the press release. Terms weren't disclosed.
Yield hunt
China has outlawed crypto trading since 2021 and has recently raised concerns about risks in and (RWA). It is instead promoting the e-CNY, the digital yuan, which can yield useful data to help in fine-tuning monetary policy and provide full control, compared with private digital .
Meanwhile, China’s swelling ranks of uber rich are seeking higher-yielding investments, leading many to sign up with asset managers licensed outside of the mainland. China has over 3mn high-net-worth individuals with investable assets exceeding CNY127tn ($18tn), the release notes.
Going direct
By positioning the platform directly to individuals, family offices and independent advisors, Animoca joins other digital asset enterprises in bypassing traditional private banker channels.
Last month, , the world's largest , launched "Binance Prestige," a high-touch service designed to onboard UHNWI and family offices directly. The service offers institutional-grade custody, structured products for yield enhancement and direct access to over 100 currencies.
Into institutional
Animoca’s investment management business, one of its three main pillars, has built a portfolio of more than 600 Web3 companies. It has been increasingly shifting from its Web3 consumer roots and into regulated institutional digital assets.
It recently entered a partnership to identify asset classes and issuers for on blockchain operator Rayls’s infrastructure. The distribution will be handled via NUVA, a chain-agnostic vault marketplace designed to connect asset issuers with investors.
Fund ambitions
Last month, Animoca received in-principle approval from the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) to operate as a regulated fund manager.
In February, the company announced a venture with Standard Chartered Bank and HKT to seek a license for issuing a Hong Kong dollar-backed stablecoin.
