Story Protocol Transforms Music Copyrights into Digital Tokens

Story Protocol has made waves by acquiring and tokenizing partial copyrights for Maroon 5's 'Nobody’s Love' and Katy Perry's 'Daisies.'

By integrating these hit songs into the blockchain, Story Protocol is paving the way for innovative investment avenues in the music copyright space. This intriguing development raises the question: Does the trend of tokenizing Real World Assets (RWA) within the music sector hold genuine promise?

Tokenization of Iconic Hits

According to Story Protocol's official announcement, the Aria protocol within the Story ecosystem has successfully acquired and tokenized portions of copyrights for the popular songs.

Maroon 5 and Katy Perry stand out due to their immense popularity and devoted fan bases. Maroon 5's accolades include three Grammy Awards and over 135 million records sold globally, whereas Katy Perry boasts over 100 million records sold, alongside numerous diamond-certified singles.

“Katy Perry and Maroon 5 aren’t just topping charts anymore—they’re topping investment portfolios,” noted an enthusiastic user on social media.

Both 'Nobody’s Love' and 'Daisies' generate considerable streaming revenue, and tokenizing their copyrights allows investors to trade or hold digital tokens representing these rights.

This initiative marks just the beginning, as Story Protocol aims to tokenize more than 50 copyrights from renowned artists like BLACKPINK, Miley Cyrus, Justin Bieber, and more.

The Viability of Music Copyright Tokenization

Real-World Asset Tokenization involves converting tangible or intangible assets into digital tokens on the blockchain. Currently, projects related to RWA have reached a combined market capitalization exceeding $32 billion, according to CoinGecko data.

“The world’s largest financial market infrastructures see immense potential emerging from the DLT/Blockchain industry for connecting various forms of RWA tokenization,” said Sergey Nazarov, Co-founder of Chainlink.

Moreover, recent predictions suggest that the tokenized RWA market could soar to $30 trillion by 2030, driven by key sectors like securities, real estate, and commodities.

Intellectual Property (IP)—which encompasses copyrights, patents, and trademarks—contributes roughly 38% to global GDP, translating to over $30 trillion annually according to the World Intellectual Property Organization (WIPO). The copyright sector specifically, which includes music, film, and literature, is valued at around $5.8 trillion.

Despite its substantial worth, the IP sector often lacks liquidity, with the acquisition, licensing, and valuation processes being intricate and reliant on legal intermediaries. Tokenizing these rights could facilitate more efficient and transparent management and transactions, a challenge Story Protocol aims to address.

Navigating Challenges: Opportunities for Story Protocol

While the potential for RWA in the IP domain is clear, Story Protocol faces significant hurdles to navigate this market successfully. First, it has notable competitors such as Ondo Finance, Centrifuge, and MakerDAO, who have established their presence. As a relatively new player that has recently launched its mainnet, Story must demonstrate unique value within the IP space.

Additionally, the successful tokenization of IP will necessitate legal acknowledgment from organizations like WIPO and alignment with regulations such as the Berne Convention. Without overcoming these legal obstacles, enticing major copyright holders may prove challenging.

Story Protocol's initiative to tokenize prominent song copyrights fits its broader strategy in the IP sector. Nevertheless, achieving success will depend on its ability to establish utility while addressing both legal hurdles and promoting market acceptance.