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A surge in tokenized IP rights has put music-backed financial products back in the spotlight, echoing the legacy of the 1997 “Bowie Bonds” deal. In 2025 alone, between $4.4 billion and $6.7 billion worth of music IP rights were packaged and sold as bonds, according to market reports, a leap from just $3.3 billion the year before.
The return of these bonds, now supported by global players such as Blackstone, Carlyle, and Michigan’s state pension fund, underscores a growing appetite for alternative yield sources. Once considered niche and exotic, the asset class is now entering the mainstream, with rating agencies assigning risk profiles and broadening investor confidence.
“Intellectual property has become one of the most valuable asset classes of our time,” — Andrew Berg, managing director at Concord Music Group, in a recent interview. “The ability to securitize these rights provides liquidity for artists and diversification for institutional investors.”
The concept traces back to David Bowie’s pioneering $55 million bond deal in 1997, which monetized future revenue streams from his albums at a 7.9% yield. Since then, the model has expanded dramatically. Today, investors can find tokenized IP rights tied not only to legacy catalogs like The Beatles but also to contemporary stars such as Justin Bieber and Lady Gaga.
Recognition Music Group raised $372 million in mid-2025 by securitizing its catalog, while Concord previously raised $1.8 billion in 2022. Analysts see this trend as part of a larger redefinition of investable assets, as traditional markets chase stable yields amid global uncertainty.
“Subsidizing IP-backed bonds gives funds access to long-term cash flows in ways equity markets cannot always guarantee,” — Saira Malik, Chief Investment Officer at Nuveen, in a note to investors.
In parallel, the crypto sector is reviving its own experiments with tokenized IP rights. Web3 projects, including Story Protocol, have launched efforts to fractionalize royalties and allow investors to directly hold shares of music income streams. In August, Story Protocol’s native token hit a new all-time high, buoyed by renewed enthusiasm for IP monetization in digital markets.
The Aria project, for instance, recently raised $15 million to tokenize music royalties, allowing users to purchase fractional ownership in songs, reminiscent of Bowie Bonds but executed on blockchain infrastructure. Meanwhile, Rialo has struggled to resolve technical bottlenecks, particularly delayed payment settlements despite blockchain’s promise of instant transfers.
“There’s still no universal standard for music tokenization,” — Hana Kim, founder of Aria. “But tokenized IP rights offer a way for independent artists and fans to share value more transparently than traditional contracts.”
Despite enthusiasm, crypto projects face significant hurdles. Unlike institutional investors in traditional markets, blockchain startups rarely gain access to established, high-value IP portfolios. Most rely on small-scale creators or experimental models that carry higher risks and limited liquidity.
Nevertheless, advocates argue that tokenized IP rights could eventually complement the broader rise of real-world asset (RWA) tokenization, a trend currently focused on money market funds and treasuries.
Industry watchers note that while mainstream finance is accelerating its embrace of music-backed bonds, Web3 is still testing the boundaries. If scalability and legal clarity improve, tokenized royalties may form part of a diversified portfolio strategy for both retail and institutional investors.
For now, the future of tokenized IP rights remains a tale of two markets: the billion-dollar mainstream bond issuances driven by legacy players, and the experimental blockchain projects betting on a decentralized music economy.
