Investing in music royalties has arrived on the blockchain.

Republic, an investment platform that’s facilitated over $500 million in VC funding since 2016, will be offering music royalty NFTs through Republic Music. The first offerings will be security NFTs connected to rapper Lil Pump and DJ and producer KSHMR with a minimum investment of $100.

The project is being launched alongside Opulous, a blockchain platform founded by the same team behind record label services company Ditto Music.

The security NFTs, a new kind of non-fungible digital asset, get their name because in most ways they meet the definition set out in the Securities Acts of 1933 and 1934. While the SEC requires most securities to undergo a registration process, Republic said in its press release that its security NFTs will be exempt.

There are several ways to skip the registration requirement. They could qualify if the sale of the security NFTs were limited to accredited investors, under the crowdfunding exemption if parent company OpenDeal Inc’s broker-dealer affiliate, OpenDeal Broker LLC, acts as the intermediary or if the company caps its offerings at $75 million during a 12-month period.

"If and when the first offering under [the crowdfunding exemption] starts, a Form C will be filed,” said Pialy Aitya, Republic chief strategy officer. “This is a notice filing. We intend the offerings to be open to accredited and unaccredited investors."

The concept of investing in music royalties has been around for years. One of the more popular platforms, RoyaltyExchange, allows users to bid on contracts that guarantee them a portion of future royalties for individual songs for a set number of years. The site has facilitated 1,200 deals worth more than $100 million.

Pialy Aitya, Republic's chief strategy officer, said offering music royalty investments through securitized NFTs will change the landscape for creators – musicians and otherwise.

“Fans are turned into investors and are rewarded for their support. S-NFTs are designed to provide efficiency in distributing investors’ share of royalties directly into their digital wallets,” she said. “We hope S-NFTs will be the key to more than just royalties—artists can offer exclusive tickets, merch, events, additional non-security NFT drops, and more to their investor community."

Investing in music royalties has arrived on the blockchain.

Republic, an investment platform that’s facilitated over $500 million in VC funding since 2016, will be offering music royalty NFTs through Republic Music. The first offerings will be security NFTs connected to rapper Lil Pump and DJ and producer KSHMR with a minimum investment of $100.

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