Tokenisation allows any rights associated with a music asset to be digitised. This process transforms the IP into a digital asset whose ownership can be divided and transferred on the blockchain via direct transactions or smart contracts and even traded on regulated exchanges.

Rights holders can now sell or lend their tokenised music IP through regulated platforms. Additionally, they can engage in peer-to-peer transactions to transfer or acquire fractions of tokenised IP rights directly from their wallets, enhancing market liquidity.

Tokenisation can target entire intellectual properties or specific components, such as rights that generate royalties. Breaking down IP into tradable segments offers instant liquidity while allowing owners to maintain long-term control and the overarching value of their IP.

Record labels, which invest in artists to secure IP for future profits despite initial asset illiquidity, benefit significantly from increased liquidity. This will drastically improve label
economics, accelerating the cycle of monetisation and reinvestment in artist portfolios, thus increasing turnover and profits.

Tokenising IP permits blockchain to manage onchain governance, facilitating decision-making processes among rights owners on issues like licensing agreement management.

Technological advancements in digitalisation and tokenisation of IP make it easier for everyone to access investment opportunities, opening up the music financial markets to a broader audience.