Royalty Exchange, a platform for buying and selling royalties, has announced the launch of the first-ever music publishing NFT. Under this new program, investors can now buy music catalogs and songs as NFTs (“non-fungible tokens”) using the Ethereum cryptocurrency.
While sales of NFT artwork and collectibles are exploding, a common criticism lies in their perceived values based on speculation and scarcity. But Royalty Exchange NFTs have an actual underlying value tied to a stream of royalty income which the owner of the NFT will collect once purchased. Royalty Exchange is pioneering the move into income-producing NFT's with the minting of its own token—dubbed the RXT.
Converting virtual cryptocurrency into asset-backed investments delivers real-world returns, providing stability and diversification, which Royalty Exchange believes will further increase the already overwhelming demand for music royalties.
Artists selling their royalties as NFTs can receive a cut of the purchase price from any future resale of their catalog. Music catalogs are often bought and sold many times over, but until now artists never saw a dime of the proceeds other than their initial sale. The “smart contract” of NFTs ensures they are compensated anytime their catalog changes hands on platforms that honor the EIP 2981 resale royalties standard.
To kick off the NFT program, Royalty Exchange will offer the first-ever NFT for a music publishing catalog, for the song “Save Dat Money” by rapper Lil Dicky. The auction listing is live now for review, and will open for bids Monday, June 7 at 11:00 a.m. ET.
The winning bidder will collect mechanical, public performance, and sync royalties, which generate income every time the song is streamed, sold, broadcast, or licensed. These royalties will be paid every quarter in Ethereum, which can be converted into fiat currency or held as cryptocurrency. The winner of the auction can also resell the NFT at any time on Royalty Exchange, or any other NFT marketplace.
Interested buyers will need to register for a free Royalty Exchange account and complete a verification process to participate.
Visit royaltyexchange.com to get started.