Today, the recently announced partnership between the music-centric blockchain protocol Utopia Genesis Foundation and the digital securities issuance platform STOKR shows that the two companies want to revive competition in an increasingly crowded blockchain-based music industry.
In a press release issued by Utopia Genesis, the company outlined a number of ways the collaboration will help artists organize and secure their work, as well as give listeners access to unique investment funds.
The release states that Utopia Genesis’s partnership with STOKR “will allow artists and music owners to code assets and create proprietary or debt-based tools for crowdfunding launches of albums, collectibles, merchandise and more,” as well as enable artists and music owners to “Sell fractional ownership to transfer the income to the community. ”
In an interview with Cointelegraph, Daniel Sestagali, Director of Strategy at Utopia Genesis, noted that the long-term vision for the partnership is to take “the first step towards creating a decentralized financial music market” that will benefit artists and fans.
“Artists can get crowdfunding from fans instead of record companies offering artists dubious offers, so artists can be more open about what they do […] When it comes to fans, they can finally move away from the music of their beloved artists and, I hope in the near future they will get a return on investment, ”said Sestagalli. “Through this partnership, we provide open transparency to the music industry and set the tone for how technology can help solve many of the industry’s challenges.”
Sestagalli also noted that the demand for such a service seems to be increasing, as big music names such as Bob Dylan, Stevie Nix and Imagine Dragons are openly considering selling some of their catalog rights.
The Utopia Genesis / STOKR partnership is just one of many efforts to use blockchain technology to disrupt the music industry. In October, Audius – a streaming service for blockchain music that wants to compete with Spotify – made headlines for a $ 8 million gift card for loyal listeners and artists.