Industry Insights: Stefan Schulz on Music IP Tokenisation and Evolving Digital Rights
Unlocking the Value of Music Intellectual Property with Blockchain
For decades, the music industry has struggled with inefficiencies in royalty distribution, rights management, and liquidity. While institutional investors and major labels have been able to capitalize on music catalogs, individual artists and smaller investors have been locked out of the market.
Now, Record is pioneering a transformation by leveraging blockchain technology to tokenise music intellectual property (IP). This innovation aims to increase efficiency, transparency, and access, fundamentally reshaping how music rights are bought, sold, and monetised.
To explore this further, I sat down with Stefan Schulz, an industry leader with over 25 years of experience in music, technology, and blockchain. Formerly on the board of Bitfury, he has played a key role in licensing, digital transformation, and the intersection of finance and entertainment.
Today, as an executive at Record, Stefan is helping to create the infrastructure for a new era of music investment.
The Music Industry is Undervalued Because of Inefficiencies
What gap in the market did you recognise that led to the creation of Record?
Stefan: The biggest issue in the music industry is the outdated, rigid financial and rights management system. The way money, royalties, and licenses flow is slow and inefficient—especially for creators. These long turnaround times lead to an undervaluation of the market, affecting revenues, velocity, and value distribution. If you compare it to financial markets, music IP lacks structured, liquid trading mechanisms. This means that despite music being a multi-billion-dollar industry, its value remains locked in traditional systems that are slow to adapt. By introducing blockchain-based tokenisation, we can unlock faster transactions, real-time liquidity, and fairer value distribution, benefiting both investors and artists.
Tokenised Music Rights as a New Asset Class
How do tokenised music rights fit into the broader portfolio strategies of institutional investors seeking diversification?
Stefan: Music IP should be a key part of investment portfolios, just like real estate, stocks, or crypto. If you look at intellectual property (IP) as an asset class, it contributes significantly to GDP—up to 30% in the U.S. and 2–5% in most countries. Music and gaming have always been at the forefront of entertainment innovation. Yet, most investors don’t have direct access to these revenue streams. Tokenisation enables them to participate in music’s financial growth by offering fractional ownership of royalties—similar to how Bitcoin transformed digital assets. With tokenised music IP, investors can gain non-correlated, recession-proof exposure to a high-growth industry while artists and rights holders receive faster and fairer payouts.
From Bitfury to Record: Lessons from Blockchain Infrastructure
During your time at Bitfury, how did working with blockchain infrastructure influence your perspective on tokenising real-world assets like music IP?
Stefan: At Bitfury, we worked on blockchain applications for AI, supply chain management, and financial security. I quickly realised that putting structured data on decentralised ledgers unlocks incredible efficiency gains. One key lesson was that tokenised assets require trust in the underlying data. In music, this means ensuring accurate rights ownership records, real-time royalty tracking, and compliance with global regulations. By integrating blockchain, AI, and decentralised finance (DeFi), we can create a robust financial system for music IP, improving liquidity, transparency, and access.
Record is Building the Infrastructure That the Industry Needs
Were there early discussions at Bitfury about diversifying beyond cryptocurrency into asset-backed tokens? If so, how did that influence your decision to focus on music rights?
Stefan: Absolutely. From the beginning, we knew that Bitcoin mining alone was not a long-term strategy. We looked at other asset classes, and intellectual property (IP) was a clear opportunity. Music IP behaves like digital gold—it holds intrinsic value, generates revenue, and isn’t tied to traditional financial markets. Bitfury saw tokenised real-world assets as the future, and music stood out because of its enormous consumer base and fragmented rights structure. Record builds on these ideas by creating a decentralised marketplace where artists, investors, and industry players can participate in a more efficient and transparent system.
A Career Defined by Innovation: From Universal Music to Web3
You’ve had an extensive career—from Universal Music to launching Europe’s first OTT video platform to Web3. Can you share how your journey shaped your approach to Record?
Stefan: My background is a mix of finance, technology, and entertainment. Coming from a banking and insurance family in Hamburg, I initially found finance too rigid. So, I moved into music and worked in radio, licensing, and digital media. At Universal Music, I was responsible for everything beyond CDs—licensing, merchandising, and digital strategy. In the early 2000s, I co-led Universal Music Digital, one of the first departments focused on digital distribution and streaming. This experience taught me that music evolves with technology, but rights management struggles to keep up. At Vivendi, I worked on Netflix-like platforms before Netflix was mainstream, and I’ve always been fascinated by how digital formats impact the value of IP. Record is a continuation of this journey—bringing structure and liquidity to music IP through tokenisation.
Emerging Markets, AI, and the Future of Music Investment
Where do you see the biggest opportunities in music and Web3 over the next five years?
Stefan: The key areas of growth are emerging markets, AI-powered rights management, and new funding models.
Emerging Markets: Places like the Middle East, Africa, and Asia are investing heavily in music and live entertainment. Saudi Arabia just hosted Coldplay’s biggest concert series, and there’s massive demand for global talent. These markets are skipping traditional licensing bottlenecks and embracing new models.
AI & Smart Rights Management: AI can automate rights tracking, royalty distribution, and content matching across multiple jurisdictions. Imagine a real-time global database where artists’ rights are instantly recognised and compensated.
Web3 & Decentralised Finance for Artists: Many artists still rely on major labels for funding. With tokenised royalties, they can raise capital directly from fans and investors—without giving up creative control.
Final Thoughts: Why Record Matters
What excites you most about what you’re building with Record?
Stefan: The biggest transformation in music IP is happening now, and Record is at the centre of it.
For investors, we’re creating a new asset class that is liquid, transparent, and globally accessible.
For artists, we’re empowering them to monetize their IP without losing ownership.
For the industry, we’re solving inefficiencies that have existed for decades.
Music IP is no longer just for labels and hedge funds. It’s an asset class for everyone.
Join the Revolution in Music Investment.
Learn more at record.nexus
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