With Brazil being one of the largest music markets in the world, the era of music tokenization has arrived. With a turnover of US$2.86 billion in 2023, the music industry is a more than profitable option to invest in and, most importantly, to make a profit. The sector's growth compared to 2022 was 13.4%.
Music as a financial asset
Brazilian music, recognized as one of the most promising on the global scene, is already experiencing technological transformation. This should change mainly how the public invests in the sector.
The tokenization of music royalties, powered by blockchain technology, has created opportunities for both investors and artists. This innovation is enabling the democratization of a billion-dollar market, estimated at R$2.86 billion, which was previously only accessible to large players.
Profits from music tokenization could reach up to 23.4% per year
The concept behind this model is straightforward: by purchasing a token, the investor acquires a share of the future royalties generated by the music. According to Mercado Bitcoin, the expected return varies between 10.9% and 23.4% per year, paid quarterly over a period of ten years. The minimum amount to invest is R$100, thus opening up the market for small investors.
This is a long-term investment opportunity. This is because the tokens do not have a secondary market, which means that it is not possible to resell them before the end of the established period.
“Send a Hi” has over 500 million views
The most recent example of this revolution is the song “Manda um Oi”, performed by Simone Mendes and the duo Guilherme & Benuto.
With over 560 million views on digital platforms, this success has now become a financial asset. Through tokenization, music allows investors to buy fractions of its future royalties, from public performances and streams on platforms such as Spotify and YouTube.
The musical asset “Send a Hi” is in the MB Digital Variable Income area. On the same page you can find other tokenized assets from various sectors.
The market is structured in partnership with the American asset manager MZIC LLC. The platform allows, in addition to musicians, startups from other segments to also raise funds through tokenization, making the investor base more accessible and diversified.
The tokenization of music royalties is a great opportunity to democratize access to a market that has historically been restricted to large investors, comments Reinaldo Rabelo, CEO of MB.
This model represents a significant step forward in the integration of technology and music, as it allows the music market to connect directly with a new generation of investors and those interested in diversifying their portfolios with alternative assets.
The article Investing and profiting from tokenized music is already a reality in Brazil was first seen on BeInCrypto Brasil.