How to Develop a Platform Like Bolero Music for Music Investors?

Music has always carried emotion, but investing in it stayed out of reach for most people. People could stream songs every day and still never clearly see how royalty revenue moves. Even investors seeking exposure hesitated because the system felt closed and unclear. When the traditional approach no longer made sense, many investors began exploring platforms such as Bolero Music.

These platforms offer structured fractional ownership of verified music catalogs. People can review historical royalty data and track performance through simple dashboards. Payouts arrive automatically while rights checks and revenue distribution run quietly in the background.

Over the years, we’ve developed numerous royalty-driven investment solutions, powered by blockchain-based ownership and financial data aggregation. Given our expertise, we’re sharing this blog to outline the steps to build a platform like Bolero Music for music investors. Let’s start!

Key Market Takeaways for Music Assets Investments

According to Mordor Intelligence, the global music market is valued at USD 33.32 billion in 2025 and is projected to reach USD 50.20 billion by 2030, reflecting a CAGR of 8.54%. This growth is not only a result of streaming scale and the recovery of live events, but also a sign that music is being recognised as a dependable, revenue-producing asset. 

Source: Mordor Intelligence

As a result, music asset investment platforms are gaining traction by expanding access to royalty income previously concentrated among labels, publishers, and large funds, now offering exposure to more than USD 45 million in annual royalties.

Platform activity highlights how this demand is taking shape. Royalty Exchange operates as a marketplace where investors acquire interests in music rights tied to streaming, sync, and touring revenues, hosting over 2,100 listed assets and more than 2,300 completed transactions. 

In Europe, ANote Music, launched in 2020, has taken a more market-structured approach by allowing retail and professional investors to bid on music royalties through a blockchain-enabled exchange, drawing early attention with auctions such as a €140K bid for the Irma Records catalog.

Institutional involvement further reinforces the long-term credibility of music as an asset class. In 2025, Warner Music Group partnered with Bain Capital in a joint venture committing up to USD 1.2 billion to acquire iconic music catalogs.

What is the Bolero Music Platform?

Bolero Music is a decentralized Web3 investment platform that allows users to invest in tokenized music rights and earn passive royalty income. The platform offers Song Shares and Catalog Shares, structured as tokenized debt instruments backed by future music revenues. 

These assets generate returns from streaming, downloads, sync deals, and commercial usage while artists retain full ownership of their intellectual property. Bolero operates on blockchain infrastructure and has recently migrated to Base Layer 2 to improve scalability and reduce transaction fees.

Here are some of its standout features,

• Account Creation and Asset Exploration: Fast onboarding enables access to a decentralized interface where users can browse handpicked music rights, review documentation, and engage with the community.
• Portfolio Building: Users can trade or group Song Shares and Catalog Shares to gain exposure to thousands of tracks treated as a structured asset class.
• Passive Royalty Earnings: Royalties are collected automatically and distributed pro rata based on song performance, with payouts credited to Bolero wallets at defined intervals.
• Digital Wallet Management: The platform supports integrated internal and external wallets for secure custody, funding via USDC and POL, and optional self-hosted wallet control on Polygon and Base.
• Secondary Market Trading: Users can buy or sell assets after launch via a non-order-book secondary marketplace with approval-based transactions and low gas costs.
• Analytics and Tracking Tools: Investors gain access to performance analytics, income-tracking dashboards, and regulatory documents, such as KIDs, to inform portfolio decisions.
• Bolero XP and Roles System: Users earn experience points through platform activity to unlock levels from Newbie to Legend, with rewards including free shares, platform discounts, and exclusive access.

How Does the Bolero Music Platform Work?

Bolero Music works by structuring music rights into fractional digital shares that may be acquired securely through a regulated platform. Ownership is recorded transparently while royalty data is collected automatically from multiple distribution sources. Returns can gradually flow to investors as payouts based on verified performance and long-term asset behavior.

The Core Concept

At its core, Bolero is built on fractional ownership. Instead of requiring millions to acquire full music rights, the platform allows investors to purchase small shares of individual songs or curated catalogs. Each share represents a partial ownership interest in the intellectual property and entitles the holder to a proportional share of the royalties generated.

Bolero focuses on two primary categories of rights.

• Master Recording Rights: Ownership of the actual sound recording.
• Publishing Rights: Ownership of the underlying composition, including lyrics and melody.

Bolero simplifies music royalty investing into three clear stages, making it accessible even for first-time alternative asset investors.

1. Invest in Music Rights

The journey begins with secure account setup built on a decentralized ownership model. Once registered, investors can browse curated music assets across multiple genres, ranging from globally recognized tracks to niche catalogs. Entry starts at as little as $ 25, significantly lowering traditional barriers to investing in music rights.

2. Build a Diversified Portfolio

Investors can spread capital across multiple assets rather than relying on a single song. Bolero enables exposure to music as a distinct asset class through two formats.

• Song Shares: Fractional ownership in individual tracks with strong revenue potential.
• Catalog Shares: Ownership in professionally curated collections of songs from established artists. These catalogs offer built in diversification and have reported a weighted average yield of 9.33 percent.

3. Earn Royalties Passively

Once shares are owned, the platform manages everything else. Bolero automatically collects royalties across 15-plus revenue streams, including streaming platforms, radio airplay, and synchronization licenses for films, television, and advertising. Investors receive proportional payouts based on real commercial performance, creating a passive income stream tied to cultural consumption.

What Makes Bolero Unique?

Bolero positions itself as a bridge between finance, culture, and technology, with three defining strengths.

Expert Curation

Industry professionals carefully select every listed asset. Both master and publishing rights are evaluated for long-term relevance, revenue sustainability, and verified ownership.

Performance Focus

Each opportunity is analyzed using proprietary valuation models tailored to music royalties. These models factor in historical data, usage patterns, and market behavior. Curated catalogs have delivered stable yields since 2023, offering a low-correlation alternative to traditional investments.

Advanced Technology

The platform operates on a decentralized infrastructure that ensures transparency, traceability, and direct ownership. Royalty collection and distribution are automated, providing clear reporting and accurate payouts for every investor.

Who Is It For

• Individual Investors: Those seeking portfolio diversification through tangible, culture-linked assets with a low entry threshold.
• Financial Professionals: Advisors and wealth managers looking to offer bespoke music investment strategies using vetted, yield-focused cultural assets.

What is the Business Model of the Bolero Music Platform?

Bolero Music operates as a blockchain-based marketplace where investors purchase tokenized debt instruments backed by future music royalties. These instruments, known as Song Shares and Catalog Shares, provide fractional exposure to music rights without transferring ownership of the underlying IP. 

Founded in 2021 by William Bailey and Arthur Amon, the platform has made music investment accessible, starting from $25 per share, supporting 20,000+ active investors and 1,500+ curated music assets across genres.

Core Business Model

Bolero tokenizes music rights into Song Shares for individual tracks and Catalog Shares for bundles of tracks. Each share entitles investors to a proportional share of royalty income from either publishing rights (e.g., lyrics and compositions) or master rights (e.g., sound recordings).

• Artists and producers can issue shares of up to €8 million per asset or onboard up to 150 investors, unlocking upfront liquidity while retaining fullcreative control.
• Investor returns are generated through automated royalty collection from more than 15 revenue streams, including streaming platforms, synchronization licenses, and live performances. Payouts are made in USDC, typically every 30 days to 6 months, after a 3% platform processing fee.

A secondary marketplace enables peer-to-peer trading of shares, with seller commissions ranging from 1.7 percent to 5 percent. Ownership and transactions are recorded on the Polygon blockchain, ensuring transparent and decentralized settlement.

Revenue Streams

The platform earns revenue through a 3 percent processing fee deducted from royalties before distribution to investors.

• Additional income comes from secondary-market trading commissions, which range from 1.7 percent to 5 percent per transaction.
• Bolero also charges minimal listing fees, typically under $0.01 per asset, for secondary-market listings.
• Fiat and crypto on-ramp services are supported through partners such as Transak and MoonPay, creating optional transaction-based revenue opportunities.

Financial Performance

Since 2023, curated catalogs on Bolero have delivered stable and recurring yields, with annualized returns typically ranging from 7.5 percent to 20 percent. In one documented case, an investor’s portfolio delivered a 53 percent cumulative return.

Revenue generation is primarily driven by streaming income, which accounts for approximately 70-75 percent of digital service provider revenues. Of this, approximately 55-60 percent comes from master rights and 10-15 percent from publishing rights. Additional income is sourced from synchronization fees and public performance royalties.

Funding History

Bolero raised €2 million or approximately $2.16 million in a Seed VC round on February 26, 2024, led by XVC Tech. Other backers include Newfund Capital, Petit Biscuit, and Thierry Boyer of Influence Growth Capital.

The funding is being used to scale international expansion, strengthen music IP infrastructure, and enhance the secondary marketplace, including development efforts through the Metadev3 partnership.

As of the latest disclosures, total funding stands at $2.16 million across two rounds.

How to Develop a Platform Like Bolero for Music Investors?

Developing a platform like Bolero Music starts by defining how music rights can be legally structured and tokenized so investors can trust the asset. The system should then include smart contracts and data pipelines that securely track royalties and automate payouts across wallets. 

Our team has developed multiple platforms for music investors similar to Bolero Music, and this is the structure we follow.

1. Legal Structuring

We start by creating compliant SPVs that legally hold the music rights and cleanly separate each asset. Economic rights are mapped directly to digital ownership so there is no ambiguity in payouts. All contracts are aligned with regional music and securities regulations to support long-term operations.

2. Ownership Contracts

We design smart contracts that define a fixed and auditable supply of ownership tokens for each asset. Royalty distribution rules are encoded at the contract level so payouts run automatically. Upgrade-safe architecture enables improvements without disrupting ownership records.

3. Royalty Engine

We integrate data feeds from DSPs and rights organizations to capture real royalty income. Revenue data is normalized into a single earnings layer that reflects accurate performance. Verified income triggers automated on-chain distributions according to contract logic.

4. Trading Layer

We build a secondary marketplace using on-chain order-book mechanics rather than liquidity pools. This allows transparent price discovery through limit orders. The structure reduces slippage and creates a more stable trading environment for investors.

5. Wallet & Compliance

We integrate self-custodial wallets so users maintain control of their assets. Stablecoin payout rails ensure predictable and fast distributions. KYC, AML, and jurisdiction-specific compliance checks are embedded across the platform to support regulated markets.

Are Music Royalty Tokens Considered Securities in all Jurisdictions?

Music royalty tokens are not universally classified as securities across all jurisdictions. Their legal status depends on local financial regulations and the token structure, including profit expectations and reliance on third parties.

As a result, the same token may be treated as a security in one country and a digital asset or contract right in another

1. The Core Legal Test and Its Global Echoes

The question of whether a token is a security is most clearly defined in the United States through the Howey Test. Under this framework, an investment contract exists if all four conditions are met:

• An investment of money
• In a common enterprise
• With a reasonable expectation of profits
• Derived from the efforts of others

Most music royalty tokens, particularly those similar to Royal Original Limited Digital Assets, satisfy the fourth condition. When someone buys a royalty token, the financial outcome depends on the artist’s ongoing efforts and the platform’s payout infrastructure. 

This dependency often places such tokens squarely within the definition of a security under U.S. law, triggering registration requirements or exemptions, such as Reg A+ or Reg D.

Similar regulatory logic exists worldwide, even when the terminology changes.

• In the European Union, regulation is shaped by MiCA, which requires formal disclosures, governance clarity, and issuer accountability for qualifying crypto assets.
• In the United Kingdom, the FCA applies a principles-based analysis that focuses on the rights and expectations created by the token.
• In Singapore, the MAS assesses whether a token represents exposure to future profits, thereby classifying it as a capital markets product.
• In Switzerland, FINMA applies a more flexible, yet still investment-focused, framework when tokens behave like financial instruments.

Why does this matter for your platform?

A single misclassification can result in cease-and-desist orders, heavy penalties, or a complete shutdown. Legal structure is not an afterthought. It directly defines your technology architecture, onboarding flows, KYC and AML obligations, and even which countries your product can legally serve.

2. The Spectrum of Tokenization 

Not all music tokens fall into the same legal category. Their status lies along a design spectrum, defined by the rights they grant and their positioning.

Pure royalty or investment tokens

These grant a direct share along a design spectrum, defined by the rights they confer and the allocation of future income, such as a fixed percentage of streaming revenue. Token holders are passive and rely entirely on others for returns. These are highly likely to be classified as securities.

Typical examples include Royal’s original LDAs and fractional catalog shares on Bolero.

Hybrid access plus reward tokens

These provide access to content, communities, or experiences, with potential but not guaranteed financial upside. Their classification sits in a regulatory gray area and depends heavily on wording, economics, and marketing.

Pure utility or collectible tokens

These provide access, membership, or ownership of a digital collectible with no promise or expectation of profit. These are generally not considered securities and are treated as virtual assets. A common example is an NFT used solely as a concert ticket or exclusive track download.

How Do Platforms Handle Taxation for Royalty Payouts?

Platforms handle royalty taxation by tracking every payout and sale event at the system level. Royalties are classified as income, while asset disposals trigger capital gains, and the platform applies withholding on cross-border payouts. To keep this scalable, the infrastructure generates audit-ready reports and automatically supports compliant regional tax filings.

The Core Tax Challenge

At its heart, a royalty platform sits at the intersection of three taxable events, each with its own rules:

• Income Taxation of Royalties: Periodic payouts are treated as income to the investor.
• Capital Gains on Asset Sale: The profit from selling a royalty share or token on a secondary market is typically a capital gain (or loss).
• Withholding at Source: When payments cross international borders, the platform or payor may have a legal obligation to withhold tax before sending funds to a non-resident investor.

The Platform’s Role: Platforms are generally not the formal “employer” or “payor” in a traditional tax sense, but they become critical facilitators of information and compliance. Their systems must accurately track, calculate, and report all this data to both users and tax authorities.

How Leading Platform Models Typically Handle Taxation?

The approach varies significantly depending on the asset’s legal structure. Below is a comparison of common models.

Successful Business Models for Music Assets Investment Platforms

The strongest music asset platforms usually succeed by structuring rights into investable units that can reliably generate yield over time. They often combine disciplined catalog selection with transaction-driven liquidity to enable efficient capital flow in and out. When built carefully this model can scale sustainably and should balance predictable royalties with controlled market access.

1. The Curated Catalog and Fund Model

This is the most institutional and portfolio-driven approach in music investing. Platforms operating under this model function as active asset managers rather than passive marketplaces. They acquire entire music catalogs or large bundles of rights through private deals, perform deep due diligence, and then fractionalize these assets into investment shares.

The core value proposition lies in expert curation, built-in diversification, and long-term yield optimization.

How It Works and Revenue

Platforms using this model typically earn through multiple layers of fees.

• The primary sales fee or spread is charged when shares are first issued. This usually ranges from 5 to 15 percent of capital raised. For example, a 10 percent fee on a $1 million catalog generates $100,000 in upfront revenue.
• Ongoing management fees are charged annually and typically range from 1 to 3 percent of assets under management or ofroyalties collected. A platform managing $50 million at a 2 percent fee would generate $1 million in annual costs.

Performance fees may also apply in some structures. These are often 10-20 percent of profits above a predefined return threshold.

Key Example

Bolero Music exemplifies this model. The platform handpicks catalogs and evaluates provenance and revenue stability before offering fractional shares. 

It targets initial yields of 7.5 percent or higher and has reported a weighted average yield of 9.33 percent on Catalog Shares. Revenue is embedded within primary offering pricing and ongoing royalty servicing.

2. The Auction Marketplace Model

This model focuses on liquidity and transparent price discovery. Platforms act as neutral marketplaces that connect rights holders with investors. They typically do not hold inventory or invest directly in the listed assets. The platform’s value lies in efficient transactions, market-driven pricing, and broad asset access.

How It Works and Revenue

Revenue is primarily transactional.

• Seller success fees or commissions usually range from 5 to 10 percent of the final sale price. A 7 percent commission on a $500,000 sale yields $35,000.
• Buyer premiums may apply and are generally smaller, typically 1-3%.

Listing or referral fees may also be charged upfront, particularly for premium placements or institutional catalogs.

Key Example

Royalty Exchange is the largest platform operating under this model in the United States. It has facilitated over $300 million in transactions through public auctions of whole and fractional royalties. 

At an estimated average commission of 7 percent, this implies approximately $21 million in gross platform revenue.

3. The Retail-Focused Fractional Share Model

This model is designed for mass accessibility and low minimum investments. It emphasizes ease of use, simplified disclosures, and familiar investing workflows. Platforms often integrate music assets into broader investment apps or use consumer-grade interfaces.

How It Works and Revenue

Revenue is generated through a combination of volume-driven mechanisms.

• Asset management fees are similar in structure to institutional models but are often lower as a percentage due to higher user volume.
• Share price spreads are embedded into fractional pricing, generating incremental revenue per transaction.
• Subscription or tiered access fees may apply for premium research, early deal access, or enhanced portfolio tools.

Key Example

SongVest targets retail investors with recognizable songs and artist catalogs. Minimum investments typically range from $100 to $500 or more. 

The platform charges an 8.5 percent transaction fee on primary sales, meaning a $200,000 offering generates $17,000 in platform revenue. 

Conclusion

Platforms like Bolero Music sit where finance culture and technology meet. They can turn music rights into structured assets that generate clear yield and steady cash flow. For founders, this model will often feel practical rather than speculative because ownership tracking, payouts, and compliance can be engineered from day one. With a strong technical base and a delivery partner like IdeaUsher, the product can launch with confidence and scale gradually. This approach should help you treat a music investment platform as a real business opportunity built on systems and trust rather than short-term hype.

Looking to Develop a Platform Like Bolero Music?

IdeaUsher can help you build a platform like Bolero Music by designing a clean backend where music rights ownership and payout logic are technically precise from day one. We would work closely with you to architect secure investor onboarding, royalty data pipelines, and automated distribution systems that should scale reliably.

Why Build With Us?

• 500,000+ Hours of Expertise: Our team of ex-MAANG/FAANG developers brings battle-tested technical excellence to your vision.
• Beyond Code: We architect compliant fintech platforms with investor dashboards, smart royalty splits & blockchain integration.
• Full-Stack Delivery: From UI/UX to smart contracts, APIs, and scaling – we handle everything.
• Speed to Market: Accelerate your launch with our proven agile development process.

Your Soundtrack, Our Code. Let’s compose the future of music investment together.

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