The Platform

The music industry is undergoing a profound transformation, especially in how artists, investors, and companies interact with royalties. For too long, the financial side of the music industry was closed off, benefiting a few players with the capital to deploy, while labels and artists had limited options. Now, investment platforms like Music Protocol are changing the game. Music Protocol leverages blockchain as the backbone for the music industry, turning music IP and all its financial derivatives into digital assets that move freely, 24/7, across borders. Launching in December 2024, this platform makes music investment seamless, opening doors for artists and investors in unprecedented ways.

Music Protocol supports every phase of the investment process, from initial fundraising to ongoing investor management throughout the lifecycle of an offering. It includes advanced features for tokenization, functionality customization, and governance oversight. Music Right Owners and Investors enter into an investment agreement called Royalty-Linked Note (RLN), which offers several advantages:

• a flexible payment structure without a rigid schedule,

• effective risk management with returns capped and floored, ensured by maturity adjustments

• reduced issuance costs and 24/ accessibility thanks to blockchain technology.

The platform unifies RLN deals in a secure, confidential environment. Issuers can either be advisory firms managing transactions for music right owners, or the right owners themselves. Investors can join offerings through invitation or public promotion, based on factors like KYC/KYB, accreditation, and jurisdiction. These offerings are managed by either music companies or advisory firms on their behalf. Retail investors will also have the chance to invest through the Liquid Record model, a blockchain-native facilitator for diversified investments.

Issuer Side

Music Protocol provides a comprehensive suite of features to manage offerings, including creating multiple offerings under one company with tailored access levels, collaborating with trusted KYC/AML regulatory advisors to secure investor experiences, and adapting the platform to corporate governance requirements.

Flexibility is key: issuers can structure offerings in a way that suits their strategy and jurisdiction, maintain full control over confidential or open market issuances, and manage multiple offerings from a single platform. The integrated investor CRM system keeps all investor data, including KYC and KYB, in one place.

RLN live offerings are presented to investors through comprehensive templates, which not only provide the necessary information but also enable issuers to track progress towards funding goals in real time. The platform ensures efficiency by guiding issuers step-by-step through the setup process in a user-friendly manner, making it easier to navigate the complexities of investment structuring. Furthermore, offerings can be tailored to attract suitable investors by integrating eligibility requirements from the outset, streamlining the due diligence process with built-in digital signatures that eliminate manual paperwork. Capital flows, whether in FIAT or stablecoins, are managed seamlessly within the platform, providing a smooth and efficient financial management experience.

Investor Side

The platform will be accessible to institutional and accredited investors, while retail investors will gain access in a second phase through Liquid Record, an on-chain investment aggregation mechanism designed to provide retail investors with the same entry points as institutional investors, but with liquidity, diversification, and risk management dynamics that are more suitable for them.

Investors benefit from full visibility of their investments, tracking progress, monitoring cash flows, and adjusting return expectations as needed. They are matched with offerings that fit their profile and jurisdiction, ensuring compliance and suitability. The investor's portfolio is linked to the blockchain and their MPC wallet, providing a single location to track all activities, just like issuers.

RLN live offerings are presented with comprehensive templates that give investors the information they need to make informed decisions. The platform ensures investors are only matched with opportunities that meet their accreditation and jurisdictional requirements, providing a compliant and secure investment environment.

Mainstream adoption begins with $RECORD

Music Protocol is redefining music finance—turning music royalties into digital assets. By simplifying processes, integrating blockchain-based transparency, and providing robust infrastructure, Music Protocol empowers artists, investors, and companies to create and participate in opportunities like never before. Launching in December 2024, Music Protocol will transform traditional royalties into financial opportunities for all.