Industry Insights: Jimmy Mikaoui on Tokenisation and the Institutionalisation of Music Royalties

Unlocking the Future of Music Rights: Web3, Record, and the Rise of IP Finance

The intersection of music and finance has been evolving rapidly, turning music intellectual property (IP) into a sophisticated asset class. While traditionally dominated by exclusive, high-stakes deals, a wave of innovation is bringing liquidity, transparency, and accessibility to the market.

In an exclusive conversation with Jimmy Mikaoui, a seasoned expert in music IP finance, we explore how blockchain technology is breaking barriers in an industry long controlled by insiders.

Music as an Asset Class: A Decade in the Making

How do you see the future of music IP rights evolving, and what role does Record play in this transformation?

Jimmy: Music IP rights have already established themselves as a valuable asset class. Over the past decade, we’ve seen a growing understanding of their financial appeal—particularly the stability of cash flows and growth of the streaming economy. Music IP also serves as a hedge against inflation, making it attractive to institutional investors.

However, access remains restricted. Most transactions in the space are still private, one-on-one deals. If you’re in the network, you have access; if you’re not, you don’t. Many of these transactions require significant financial commitments, limiting participation to large funds, private equity firms, and select family offices.

Record is changing that. It offers a new financing alternative for music IP owners while simultaneously providing professional investors with diversified exposure to music IP through a liquid instrument—something that is incredibly rare in the market today.

Web3 and the Future of Music Royalties

How does Web3 technology fundamentally change the way music rights and royalties are monetised compared to traditional models?

Jimmy: The traditional music industry still relies on outdated reporting systems, with intermediaries requiring months to process transactions before passing data along. Over the past five years, tech companies have pushed reporting forward, but inefficiencies remain.

With Record, the tokenisation of agreements enhances transparency and speed. Every transaction, every royalty payment, and every contractual obligation is stored on the blockchain, ensuring real-time accessibility and reducing administrative delays.

Even beyond financing, simply tokenising music IP assets brings massive internal efficiencies for rights owners. Instead of navigating fragmented systems, all relevant financial and legal data is centralized, structured, and instantly verifiable.

Creating a Liquid Market for Music IP

Investors in Record’s ecosystem benefit from a more open market. How does that impact pricing and liquidity?

Jimmy: The biggest advantage for investors is the introduction of a liquid instrument for music IP. Traditionally, music rights are bought for the entire life of the copyright or over long-term deals, locking up capital for years. If an investor wanted to exit, there was no efficient marketplace to do so.

With Record, that changes. Now, investors can trade their exposure in a structured market, allowing for better capital efficiency. Additionally, this model creates better pricing dynamics for music IP owners, as liquidity leads to more competitive valuations.

Another key aspect is diversification. With traditional asset-backed securities (ABS) in music, investors get diversification, but these transactions are relatively rare. Record simplifies access, allowing investors to build diversified exposure more frequently and at smaller entry points.

Institutional Investors and the New Music IP Market

How are institutional investors currently approaching music IP, and how does Record fit into this landscape?

Jimmy: Institutional investors already have multiple avenues to gain exposure to music IP—whether through private equity, private credit, or ABS deals. Some of these deals are massive. In 2024, we saw a range of transactions: Concord raised $800 million, while Duetti successfully closed an $80 million deal.

The problem is scale and accessibility. Most of these opportunities require nine-figure commitments, making them inaccessible to smaller institutional players.

Record solves this by enabling participation in similar opportunities but without requiring massive upfront investments. When you combine that with liquidity, you get something that’s common in other asset classes but entirely new for music IP.

A perfect example is Hipgnosis, which was publicly traded before going private. Hedge funds that had done their research on music IP loved it because it was a liquid, tradable hedge against inflation. Once it went private, that exposure disappeared. Record fills that gap.

Bridging the Education Gap in Music IP Finance

What’s next for Record, and how are you helping investors understand this new market?

Jimmy: Education is crucial. Many experienced financial players don’t fully understand music IP, and vice versa—many in the music industry don’t grasp the investment potential.

That’s why we focus on educational marketing, particularly on platforms like X and LinkedIn. The goal is to bridge the gap by simplifying complex financial structures and demonstrating how Web3 technology is unlocking a historically closed market.

If we reach investors who already recognize the value of liquidity and diversification, they’ll immediately see the benefits of Record. For others, it’s about showing how tokenisation can transform an industry that has remained unchanged for decades.

Final Thoughts

Music IP is no longer just a niche investment—it’s becoming a mainstream asset class, fueled by streaming revenues, inflation-resistant cash flows, and now, the power of blockchain.

As the industry continues to evolve, Record is leading the charge, offering greater transparency, liquidity, and accessibility for investors and rights holders alike.

Learn more at record.nexus

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