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As the landscape of real-world assets evolves rapidly, the tokenization of cash flows from intellectual property is gaining the most interest from financial institutions. Among the various sectors looking at IP tokenization, the music industry appears to be leading the charge.The global music industry is driven by continuous and widespread consumption. As the industry evolves, projections by <a href="https://www.goldmansachs.com/intelligence/pages/infographics/music-streaming/" rel="noopener noreferrer nofollow">Goldman Sachs</a> indicate it could reach $153 billion by 2030. This strong growth and the stable and recurring revenue streams from music royalties make music IP an ideal asset for investors.Traditionally, music rights have been illiquid and difficult to exchange. Tokenization solves this by converting these rights into digital assets, which can be easily bought, sold, and exchanged. This increased liquidity opens up new investment opportunities for a broader range of investors, including institutional players.Music Protocol: Leading the Future of Tokenized Music Assets<a href="https://www.musicprotocol.io/" rel="noopener noreferrer nofollow">Music Protocol</a>, a specialized Layer 1, works with the music industry and capital providers to develop a comprehensive solution for tokenizing music catalogs and royalties.<a href="https://www.linkedin.com/in/mrsergiomottola/" rel="noopener noreferrer nofollow">Sergio Mottola</a>, Founder of Music Protocol, states: “Music Protocol is not just about adopting blockchain technology; it&#39;s about creating a new economic network for the music industry. By tokenizing cash flows from licensing agreements from music IP, we are opening up a market of over $500 billion to capital providers, offering a stable and attractive digital asset class that will dominate the RWA space.&#34;Why Music IP is an Attractive AssetTokenized Music IP Cash Flows can become one of the largest sectors in the RWA space. Catalog yields are generated by a global mass behavior (listening to music). Streaming emerges as the most compelling monetization channel due to its ability to generate more stable returns over time. Its reliance on mass behaviors, such as music listening, renders it less susceptible to the discretionary actions of the rights owner. Consequently, financial products built on streaming exhibit lower moral hazard risks compared to other monetization channels that are more heavily dependent on active management or promotion. In these latter channels, factors such as poor decision-making, inadequate promotion, or detrimental personal behavior on the part of the rights owner can significantly impact returns.The Advantages for Capital Providers:<ul><li>Portfolio Diversification and Hedging: Revenues from music are quite predictable and aren’t correlated with other asset classes like stocks, making them a hedge against market volatility.</li><li>Attractive ROI and Growing Market: Revenues from music are expected to grow by 10.3% annually, reaching $19.24 billion by 2027.</li><li>New Derivative Products: Financial institutions can develop new investment vehicles, such as music royalty indexes, offering consumers easy access to the music royalty market.</li></ul>Upcoming Launch on Fjord FoundryWith the <a href="https://app.fjordfoundry.com/pools/0x49c39cB673e58398f177b8F18c540D53d50b7b81" rel="noopener noreferrer nofollow">upcoming Liquidity Bootstrapping Pool</a> on Fjord Foundry launching on July 8th, Music Protocol will showcase its innovative token distribution approach. This event emphasizes Music Protocol&#39;s community-driven ethos, ensuring that its supporters and early adopters are at the forefront of the journey.In conclusion, as Sergio Mottola explains, &#34;Music Protocol is not just about adopting blockchain technology; we are opening up a market of over $500 billion to capital providers through a brand-new asset class.&#34;Tokenized IP has the potential to dominate the RWA space. With the $RECORD token, investors can access the music industry like never before, providing new financial opportunities and driving the adoption of blockchain in the entertainment sector.

Music Protocol is Taking the RWA Sector to the Top

The Bitcoin Daily

Інші статті, опубліковані 4 лип. 2024 р.

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