360X Music has issued a security token for music royalties in association with Germany’s music rights management society GEMA. The blockchain-based tokens are for royalties relating to compositions by Hans Günter Wagener, the German film score composer. Parent company 360X is a digital assets startup backed by Commerzbank and the Deutsche Börse. It provides a BaFin-regulated marketplace for tokenized music, art and real estate.
By tokenizing music royalties, authors can unlock early value in their creations rather than waiting for months and years to receive income. There are pros and cons. For example, if a track is far more popular than expected, the musician would have been better off waiting to receive the royalties. However, the artist doesn’t necessarily have to sell the token. In the future, musicians could use these royalty tokens to borrow against future earnings.
“The first token for the music industry issued jointly by GEMA and 360X Music is an important milestone on our way to improving the economic situation of lyricists, composers and publishers and ensuring that they continue to have control over their rights,” said Dr Harald Heker, CEO at GEMA.
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