India’s Toonz Media Group has teamed up with non-fungible token (NFT) platform GuardianLink to launch a division that will turn its proprietary brands, and those from third-party creators, into collectible digital tokens.
NFTs are unique pieces of digital content—a virtual collectible—with ownership details stored on an online ledger called a blockchain.
Together, the companies are forming Toonz NFTLabs to design and launch tokens through GuardianLink’s marketplace. Third-party creators and brands working with the new division can also create their own pages on GuardianLink’s platform to showcase their IP, host auctions and process sales.
Toonz is expanding into the technology to create a new revenue stream, drum up interest in its own IPs and provide indie brands with a way to fund their projects, according to a release. In addition, Toonz is looking to ink co-production deals with companies that are introducing new properties with an NFT-first strategy, a Toonz spokesperson told Kidscreen. After these brands are launched in the marketplace, Toonz could be interested in coming on board to help expand their presence beyond NFTs, the spokesperson added.
Toonz has not announced which of its brands will get an NFT treatment yet, but it has a large catalogue of options for digitization, including Paddypaws and Pals and Sunnyside Billy.
The studio is the latest kids entertainment company to expand into NFT production. It joins Australian animation house Xentrix Studios Australia, which is launching its own digital unit to create NFTs. And both Mattel and Warner Bros. have recently inked deals to turn their brands into collectible tokens.