Music Bond: Advancing the Financial Landscape of the Music Industry

What is Music Bond?

Music Bond Token is designed to advance the financial landscape of the music industry by providing traditional and crypto-native investors with frictionless access to industry yields, simplifying the investment selection process.

A New Approach to Tokenisation

The traditional approach to tokenisation involves creating fungible tokens that represent ownership of a specific real or financial right. Investors in these products face the challenge of selecting investments from many existing options.

Music Bond Token originates from a fundamentally different idea: creating a homogeneous instrument with a risk profile balancing industry yield and volatility through a fully transparent and on-chain financial mechanism.

Music Bond Token is not strictly a stablecoin, but its circulating supply will always be backed by USDC (uninvested liquidity) or future royalty values, including yields, ensuring it is always implicitly over-collateralised.

How does it work?

The yield will be accessible to all Music Bond Token holders who open yield positions on the protocol, locking their liquidity into Music Bond Contracts.

Music Bond Contracts are agreements between music rights owners and underwriters that secure future royalty cash flows, ensure transparency, and reduce counterparty risks. The yields from these MBCs are distributed to Music Bond holders who stake their tokens through Music Yield Smart Contracts, providing a continuous income stream.

Regulated financial entities will manage all critical phases of Music Bond Token money flow - such as liquidity injection and investment catalogue selection. At the same time, Music Bond will be a utility token freely traded on the market.