- Opulous will provide access to capital for artists outside
of traditional financial institutions.
- First ever decentralised finance offering backed by music
as an asset class
LONDON, Feb. 1, 2021 /PRNewswire/ -- Ditto, the
award-winning global music distribution and record label services
company, which has processed more than $1
billion in royalties to date, has today announced
Opulous: a pioneering peer-to-peer platform to help increase
artists' access to capital without the need for traditional
institutions such as banks.
The first-ever decentralised finance (DeFi) offering backed by
music as an asset class, Opulous will function as a loan
pool which artists can borrow from and also contribute to. For
those artists looking to borrow money, the loan is guaranteed
against the artist's 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.
Opulous will use blockchain technology to connect investors with
artists needing a loan, driving fresh investment into an industry
that is set to double revenues over the next decade. Smart
contracts will automate monthly premium and interest repayments and
direct profits straight to investors. It will onboard staking from
other parties to enable the widest possible backing.
The idea was inspired by Ditto's 250,000 plus users, many of
whom hold their streaming revenues in their accounts and who also
may not be eligible for financial support through traditional
means. Open to anyone, not just Ditto users, Opulous offers a bold
new venture for investors while providing the option of financial
support for artists who are looking to fund the next stage of their
careers.
Currently in development by Ditto and RandLabs, Opulous is being
built on Algorand's public blockchain. Founded in 2017 by acclaimed
cryptographer Silvio Micali,
Algorand is an open source public blockchain based on a pure
proof-of-stake consensus protocol that supports 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.
Commenting on the launch of Opulous, Ditto CEO Lee Parsons said, "Musicians are often
largely overlooked when it comes to traditional banking loans, or
the terms are so unfavourable it isn't worth their time. Using
De-fi , Opulous cuts out traditional banking, providing musicians a
platform with minimal interest payments, while giving investors the
chance to stake a claim in one of the most exciting and fastest
growing financial industries in the world."
"Using blockchain technology to democratize the access to the
music's capital markets is really disruptive and unique. We are
excited to back the Opulous platform and for the opportunities this
is bringing to investors and music artists. By building on top of
the Algorand blockchain, Opulous platform will perform as one of
the first real world DeFi applications," added David Garcia, CEO and Managing Partner of
Borderless Capital.
About Ditto Music
Ditto Music is one of the world's biggest digital distribution
and record label services platforms, supporting over 200,000
artists and labels across the world. Our services include music
distribution to major stores like iTunes and Spotify, chart
eligibility, royalty collection and online promotion. Ditto's
record label services handle accounts for major and independent
artists. These include social media, radio plugging, online and
offline promotion and project management.
www.dittomusic.com
About Borderless Capital
Borderless Capital is a modern financial institution investing
capital and co-building financial products that accelerate access,
bootstrap adoption, and create value globally through the Algorand
Borderless Economy. We do not stop with just investment. We also
provide guidance and mentorship to grow our portfolio companies
into successful and category leading businesses. As a thought
leader in blockchain with deep expertise in the Algorand ecosystem,
we advise our portfolio companies on go-to-market strategies to
effectively build their network effect. In short, we leverage the
synergy of our portfolio, partners network, and domain expertise to
create value for everyone.
For more info: https://www.borderlesscapital.io.
About Algorand Foundation
The Algorand Foundation is a not-for-profit organization that
has a vision of a borderless, frictionless economy built on public,
decentralized blockchain technology. The Foundation, in partnership
with Algorand Inc, has built the Algorand blockchain protocol —
initially designed by cryptography pioneer and Turing award winner
Silvio Micali and a team of leading
scientists — as the cornerstone of achieving this vision. The
Foundation envisions a wide breadth of applications being built on
this protocol by a new, wider community of mainstream developers.
The Foundation is committed to facilitating this innovation in a
sustainable and eco-friendly manner by utilizing the Proof of Stake
consensus algorithm.
For more information contact:
Conor Mallon
Conor.mallon@ldcommunications.co.uk
Jasper Watkins
Jasper.watkins@ldcommunications.co.uk
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SOURCE Ditto Music; Algorand Foundation