We report the preparation of stable micelles from random copolymers of 2-hydroxyethyl methacrylate (HEMA) and perfluorophenyl azide (PFPA)-derivatized HEMA (HEMA-PFPA). The copolymers were synthesized by RAFT polymerization at room temperature under mild conditions without affecting the azide functionality. Upon addition of water to the copolymer solution in DMSO, the random copolymers self-assembled into micelles even at the percentage of HEMA-PFPA as low as 4.5%. The size of the micelles can be controlled by the molecular weight and the concentration of the copolymer, and the percentage of HEMA-PFPA in the copolymer. In addition, iron oxide nanoparticles and quantum dots were successfully encapsulated into the micelles with high encapsulation efficiency (∼80%). These nanoparticles, which were hydrophobic and formed agglomerates in water, became fully dispersed after encapsulating into the micelles. The micelles were stable and the size remained unchanged for at least 6months.