Hivemind secures $17 million from M&G as asset managers explore tokenization.

      Hivemind Digital Group has secured $17 million in a strategic funding round led by M&G Investments, the asset management division of the British savings and investment group, which managed £371 billion in assets as of the end of March. This funding round grants M&G a seat on Hivemind’s board and a stake in a company that operates at the intersection of traditional fund management and the tokenization of real-world assets.

      As part of the agreement, Alex Seddon, the head of impact and private equity at M&G Investments, has joined the board. This investment marks the first partnership between the two companies, and neither has disclosed the valuation or the proportion of equity acquired.

      The funding round attracted a combination of Asian financial institutions and crypto infrastructure companies, including CPIC Investment Management (HK), ZA Bank, FalconX, and Sonic Boom Ventures, along with board members and former senior executives from Man Group, Apollo Global Management, Coinbase, Citi, First Citizens Bank, and GoldenTree Asset Management.

      The investor base is predominantly from Hong Kong and consists of firms that already engage with digital assets in a professional capacity; for example, ZA Bank is one of the licensed virtual banks in the region, and FalconX acts as a prime broker for institutional cryptocurrency trading. This list of investors appears to be strategically formed to facilitate access to the Asian market rather than to maximize investment amounts.

      Founded in 2021 by Matt Zhang, who previously led trading at Citi, Hivemind operates out of New York and London. The firm focuses on allocating institutional capital across digital asset strategies and developing the technical infrastructure necessary for transferring assets onto blockchain networks.

      Zhang characterized this funding round as a shift in direction rather than merely an additional investment. He stated, “Hivemind was established based on the belief that digital assets should be recognized as a distinct and institutional-grade asset class,” framing the upcoming phase as one that aims to apply blockchain technology beyond digital assets and support new applications within asset management and financial infrastructure.

      Seddon from M&G emphasized a selective approach to innovation, citing a focus on opportunities where new technologies align with institutional standards and robust governance. He noted that the investment reflects a growing interest in how tokenization could foster practical, long-term applications in financial markets.

      The difference in perspective between the two statements reveals the true nature of the deal. The $17 million investment and a board seat represent a research position for an asset manager of M&G’s scale rather than a deep strategic commitment, allowing M&G to gain insights into a market it has yet to enter competitively.

      CPIC IMHK, the Hong Kong arm of the Chinese insurance company, provided clearer reasoning for its participation, with CEO CG Zhou stating, “Blockchain and tokenization signify a fundamental change in this landscape, and Hivemind is one of the few firms with the necessary track record and institutional connections to seize that opportunity at scale.”

      Hivemind indicated that the funds will be used to invest in tokenization-enabled opportunities across various asset classes, enhance its international institutional partnerships, and build infrastructure aimed at the next generation of the asset management industry. However, no specific timeline or asset classes have been identified for initial focus.

      The company highlights a forecast that the tokenized asset market could reach $18.9 trillion by 2033, based on a 2025 report by Ripple and Boston Consulting Group, which also identifies several significant challenges to achieving this goal. Estimates in this sector can vary greatly depending on the source and the definitions of tokenized assets employed.

      What is clearer is that major institutions have begun launching products in this space. For example, JPMorgan has submitted a filing for a second tokenized money market fund on Ethereum, and the discussion among established players has shifted from whether to tokenize assets to the question of ownership of the underlying infrastructure.

      This is the strategic space Hivemind aims to enter with this funding round, explaining why a firm of M&G’s financial strength is willing to invest a relatively modest sum to participate in these critical discussions.