How it works

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A songs journey to MasterExchange

Every song has a master recording

The song has a master recording, a master right and receives master royalties.

An artist, label or producer usually splits the master royalties among them.

Anyone that receives master royalties (ex. streaming royalties) are a ‘master beneficiary’ and can apply to launch an Initial Music Offering.

The party and MasterExchange prepares the Initial Master Offering of the song

Legal agreements are set up and reviewed.

The royalty share price is set based on a valuation of the master royalties that are listed. The valuation is available in the white paper for each song.

The royalty shares are sold at the Initial Master Offering

Info about the song, the valuation and a white paper is available. 

A pre-sale period is held before the public offering…

The shares can be sold and bought on the exchange

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The royalty payouts happens each quarter

All the master royalties are collected, primarily streaming royalties, from the major platforms such as Spotify, Apple Music and Youtube.

MangoPay acts as our financial custody partner which safeguards all the funds on the platform.

The user who own the royalty share at the end of quarter will be entitled to receive royalty payouts proportionally to the amount of shares they own.

A song's journey to MasterExchange

The master behind every song

A song encompasses a master recording, master rights, and generates master royalties. Typically, artists, labels, or producers divide these royalties among themselves. Those who receive master royalties, such as streaming royalties, are considered 'master royalty beneficiaries.' These beneficiaries can apply to launch an Initial Music Offering (IMO) on the MasterExchange platform.

Legal agreements & preparations

When a master royalty beneficiary is accepted by MasterExchange, they can divest a certain percentage of their master royalties and divide them into royalty shares. Legal agreements are established, outlining details such as quantity, price, and more. Transparent information about each investment opportunity is provided on the platform for users to review before placing their orders.

The Initial Music Offering

The Initial Music Offering (IMO) is an event where the master royalty beneficiary invites fans and music collectors to purchase royalty shares of a song. The IMO features a subscription period of seven days, where the first two days are open for VIP and priority access only.

Royalty shares are traded

After the 7-day IMO, royalty shares are allocated and the trading is opened. If the IMO is oversubscribed, shares will be allocated to VIP first, then priority, and finally public, based on the order placement time within each tier. VIP users are always guaranteed to receive shares.

Quarterly royalty payouts

Master royalties, primarily from streaming platforms like Spotify, Apple Music, and YouTube, are sent to MasterExchange. Our trusted financial custody partner safeguards all funds on the platform, ensuring secure transactions. Users owning royalty shares at the end of each quarter are entitled to receive proportional royalty payouts based on the number of shares they hold.

Frequently asked questions

What is MasterExchange?

MasterExchange is a platform where you can invest in and trade shares of music royalties and receive royalty payouts.

When will MasterExchange launch?

MasterExchange is launching soon! To stay in the loop, sign up for our waitlist to receive email updates, and follow us on our social media channels.

Who can invest in music at MasterExchange?

MasterExchange is open to residents of the European Economic Area (EEA), the UK and Switzerland who are 18 years old or above. These countries are included at launch: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Liechtenstein, Iceland, Norway, Switzerland, and the United Kingdom.

What am I investing in, and how can I trade my assets?

When investing on MasterExchange, you're buying a portion of future master royalties in music rights through an Investment License Agreement (ILA) between you and the music rights owner listing their music on our platform. The ILA is divided into shares, each linked to a unique Purchase Agreement. This Purchase Agreement is represented by unique digital certificates called non-fungible tokens (NFTs) that provide secure and transparent ownership tracking. All these assets are stored with a licensed third-party custodian and can be exclusively bought, sold, or held on the MasterExchange platform, ensuring a compliant and seamless trading experience.

What is a Initial Music Offering (IMO)?

An IMO is an event in which the original royalty owner sells a predetermined portion of their master royalties to investors and collectors on MasterExchange. The subscription period lasts for 7 days, and no shares will be distributed to buyers until the period ends.

What is VIP access and priority access at an IMO?

VIP access guarantees an allocation of royalty shares for the holder. Those with priority access have a higher likelihood of receiving an allocation at the Initial Music Offering.

How do investors on MasterExchange receive royalties?

Songs generate royalties through platforms like Spotify, Apple Music, YouTube, and more. These platforms pay the master beneficiaries, who then distribute a portion of their earnings to investors on MasterExchange.