A couple of weeks ago, Lee Parsons, CEO and co-founder of music distribution and record label services company Ditto Music, argued that there’s never been a better time to be a recording artist.
Now, having processed more than $1 billion in royalties to date, Ditto has launched a new blockchain-powered financial support initiative for artists called Opulous, that will help artists’ access cash without the need for traditional institutions like banks
Described as the first-ever decentralised finance (DeFi) offering backed by music as an asset class, Ditto explains that Opulous will function as a loan pool which artists can borrow from and also contribute to.
Loans are guaranteed against artists’ past streaming revenues with the copyrights they own held as collateral.
Meanwhile, artists and other investors will also be able to pay into Opulous’ Music Copyright Pools, earning 10% per annum on any contributions they make.
The platform is open to anyone, not just Ditto’s 250,000-plus users.
Opulous uses blockchain technology to connect investors with artists needing a loan.
According to Ditto, smart contracts will automate monthly premium and interest repayments and direct profits straight to investors. The company also says that it will onboard staking from other parties to enable the widest possible backing.
Currently in development by Ditto and RandLabs, Opulous is being built on Algorand’s public blockchain.
Founded in 2017 by renowned computer scientist and cryptographer Silvio Micali, Algorand is an open source public blockchain based on a ‘pure proof-of-stake consensus protocol’ that promises to support quick, efficient and secure transactions anywhere in the world.
Opulous has already raised $1.5 million in its seed round of funding, including support from Borderless Capital, TrustVerse, Somesing, BASIC, and Kosmos Capital, with Elastos confirmed as one of the first staking partners.
A minimal viable product (MVP) is expected in two months.