Republic is offering 'security NFTs' for fans who want to invest in songs and albums

Investment platform Republic is now offering what it calls “Security NFTs,” aimed at giving music fans the opportunity to share the rights to artists’ royalties.

These so-called “S-NFTs” represent fans’ investments in artists’ songs and albums, and the subsequent returns those music assets generate through plays, streams and licensing. 

One of Republic’s main aims is to give artists back control of their music while also involving fans. This kind of investment generally involves buying music rights through “membership units” of the LLC that owns a song or album, the company explains on its website. 

“The same membership units that may typically be represented by an LLC Membership Certificate will novelly be represented by the S-NFT instead,” Republic’s Chief Strategy Officer Pialy Aditya told The Block.

Initially, fans will be able to invest in a new song called Mona Lisa by rapper Lil Pump featuring Soulja Boy, as well as an unspecified track from electronic artist KSHMR. Artists could eventually offer tickets, merchandise and “non-security” NFT drops to investors as well via Republic. 

Republic is using the decentralized peer-to-peer loan platform Opulous for its music-related investments. Built on the Algorand blockchain, Opulous focuses on DeFi loans for musicians and NFTs that allow music fans to have a share in artists’ music copyright. 

Republic is offering S-NFTs under the U.S. Regulation Crowdfunding (CF). “Republic is a registered crowdfunding portal which allows it to facilitate offerings under Reg CF,” Aditya said. “Like all Reg CF security offerings, these offerings are not approved nor qualified by the SEC.”