The Next Financial Frontier: Investing in Music Intellectual Property
For decades, investing in music intellectual property (IP) has been a privilege reserved for music companies, acquisition funds, private equity firms, and hedge funds. Music catalogues have become one of the most lucrative asset classes, attracting high-profile buyers like Blackstone, Hipgnosis, and Universal Music Group. Yet, for the general professional investor, gaining exposure to music royalties has remained nearly impossible.
By tokenising royalties, Music Protocol aims to create a new asset class that is globally accessible, transparent, and liquid.To understand how this innovation could transform the music industry, we sat down with Sergio Mottola, CEO of Record Nexus, to discuss the platform’s vision, the role of the $RECORD token, and why music IP is poised to become the next frontier in alternative investments.
“No One Can Invest in Music IP—And That’s a Problem”
Marco: Sergio, what fundamental issue is Record Nexus aiming to solve?
Sergio: The core issue is simple: no one can easily invest in music intellectual property.
If you look at the financial market today, you can invest in stocks, bonds, real estate, crypto, and commodities. But when it comes to music IP, the only financial instruments available are a handful of shares and corporate bonds issued by major labels like Universal and Warner Music.
“Music is a $40+ billion industry, yet the financial tools to invest in it are extremely limited. If you’re not a hedge fund or a major investor, you’re locked out of the market.”
We want to change that by creating a structured financial market for music royalties—one that allows investors of all sizes to buy, sell, and trade tokenised music IP just as they would with stocks or crypto.
How Blockchain Is Unlocking A New Asset Class
Marco: How does Record Nexus leverage blockchain to solve this issue?
Sergio: Blockchain is simply a better infrastructure for financial instruments.
BlackRock, Goldman Sachs, and Franklin Templeton all agree that tokenisation is the future of finance. The reason? It makes investing cheaper, more efficient, and globally accessible.
We are applying this principle to music IP by tokenising royalties, which provides:
Lower transaction costs – Traditional music IP deals require lawyers, contracts, and months of negotiations. Tokenisation eliminates most of these costs.
Faster settlements – Buying into a music catalogue today takes weeks or months. With Music Protocol, it can happen in seconds.
Liquidity – Instead of holding a music asset for years, investors can trade tokenised music royalties in real-time.
“Record Nexus is not just creating a new investment product—we’re creating an entirely new financial market for music IP.”
The Role of the $RECORD Token
Marco: How does the $RECORD token fit into the Record Nexus ecosystem?
Sergio: The $RECORD token plays a critical role in governance and value creation within our platform.
Governance Power – Token holders will eventually govern the entire ecosystem, deciding on risk management, compliance, and financial parameters.
Economic Participation – As the ecosystem grows, we envision a model where token holders could share in the value generated by the platform—pending regulatory updates on token classification and approvals.
Transparency & Risk Management – The $RECORD token will be used to track royalties, assess risks, and streamline financial operations.
In the future, I believe that token holders will act as key decision-makers, ensuring
that Record Nexus remains decentralised and fair.
Why Music IP Is the Next Big Alternative Asset
Marco: Why should investors pay attention to music IP as an asset class?
Sergio: Because music is one of the most recession-proof, non-correlated assets in the world.
Steady Cash Flows – Unlike stocks or crypto, music IP generates recurring revenue through streaming, licensing, and radio plays.
Non-Correlated Asset – Music IP does not follow stock market trends, making it an excellent hedge against economic downturns.
High Growth Potential – The global music industry is expected to grow 8-10% annually, making it one of the fastest-growing entertainment sectors.
“If you could invest in the music industry like you invest in stocks, why wouldn’t you?”
How Artists Benefit from Record Nexus
Marco: What’s in it for artists and music rights holders?
Sergio: For too long, artists have relied on labels, private equity firms, and banks to monetise their music catalogues. This often means giving up control and losing a significant percentage of revenue.
With Record Nexus, artists and rights holders can:
Sell tokenised royalties directly to investors.
Retain more control over their financial future.
Engage their fanbase in a new way—imagine fans owning a piece of their favourite artist’s music instead of just streaming it.
“We want to give artists a new way to raise capital—one that doesn’t involve giving up their creative freedom.”
What’s Next for Record Nexus?
Marco: What are your next steps?
Sergio: We are rolling out Record Nexus in phases, starting with:
Tokenising our first music catalogues.
Expanding governance for token holders.
Integrating real-time royalty tracking and AI-powered risk management tools.
We are also in discussions with institutional investors, major artists, and music IP funds who are eager to use our platform.
Final Thoughts: The Future of Music Investment
With its blockchain-powered ecosystem, Record Nexus is set to revolutionise how music IP is owned, traded, and valued.
Investors gain exposure to a recession-proof, high-growth asset class.
Artists unlock new revenue streams without giving up control.
The music industry benefits from increased liquidity and transparency.
The future of music investment is here. Will you be a part of it?
