First of its kind: the Security NFT
It’s about time that NFTs and securities join forces. Republic is thrilled to be the first major investment platform to offer music investing through a new innovation - the S-NFT.
For those of you new to the NFT scene, NFT stands for a non-fungible token. A non-fungible token is a "one-of-a-kind" digital asset, stored on the blockchain.
NFTs represent ownership over unique items like art, videos, gifs, collectibles, and more.
Introducing: Security NFTs
Security NFTs (S-NFTs) combine the ownership and transparency of NFTs with an innovative investing framework. The S-NFT makes it possible for fans to invest capital toward a new song or album and in return, share in the royalties.
Republic is one of the first crowdfunding platforms to offer this type of investment. Artists have sold NFT artwork that accompanies an album or song, but few have been able to figure out the mechanics of how to tie the returns from streaming distribution to the NFT.
When you invest in music offerings through Republic, you are typically buying the music rights through special membership units of an LLC that owns the rights to a song, album, or equivalent. The membership interest may be represented by a non-fungible token (an NFT) which is a representation of that ownership and the vehicle in which returns are distributed.
Just the beginning
We hope S-NFTs will be the key to more than just royalties—artists can offer exclusive tickets, merch, events, additional non-security NFT drops, and more to their investor community.
Learn more about investing in music at www.republic.co/music
"S-NFT” or “Security-Non-Fungible Token” is a new term, developed by Republic to describe a non-fungible digital asset offered and sold as a “security”, as defined by the Securities Act of 1933 and the Exchange Act of 1934 (the “Securities Acts”). Blockchain technology is a rapidly expanding and changing area that is effected by the Securities Acts as well as state, federal and international law. Republic intends for offerings of S-NFTs to be conducted pursuant to exemptions from registration under the Securities Acts as facilitated by members of the Republic ecosystem. S-NFTs are a work in progress and therefore Republic and each Issuer of S-NFTs reserve the right to re-characterize the digital asset. Please review the terms, conditions and offering disclosures regarding an offering of S-NFTs for a full description of their characteristics, including but not limited to economic rights, fungibility, purchase and trading restrictions and the underlying technology of each S-NFT offered. Investments in private securities are inherently risky, illiquid and subject to a total loss of capital.