Hashrate tokenization as an asset class has emerged on STOKR in the form of notes tokenized on the Liquid sidechain of Bitcoin with a fixed hashrate as underlying asset.
What is the hashrate?
Bitcoin’s Proof-of-Work algorithm leverages the hashrate to secure the network and the wealth stored on it.
The hashrate measures the Bitcoin network’s computing power when verifying transactions and adding blocks on the blockchain per second. It is essentially the collective of hardware connected to and participating in the mining process of Bitcoin. So the more computers mining, the higher the hashrate.
What is the financial instrument?
The Notes qualifying as transferable securities and are as such fungible. They are issued by a Luxemburg umbrella securitisation fund (fonds de titrisation) within the meaning of the Luxembourg securitisation law. In general the Notes mature after 36 months of the first issuance in order to mirror the general lifetime of mining equipment.
Who are the investors?
Investors who seek to further diversify their portfolio with a largely uncorrelated asset class to increase returns and decrease volatility. Investment in the Bitcoin hashrate gives investors multiple possibilities to develop novel investment strategies.
Music Royalties Tokenization
Music royalty tokenization is about to emerge on STOKR via the Algorand Blockchain where Notes will be tokenized so investors can buy into royalty payments.
What is the music royalty interest?
Music royalties are revenue streams generated when music rights are used. For example, the holder of a sound recording right collects revenues as and when the recording is played on a streaming platform.
Music royalty interests give rights to the future music royalty revenue streams. On STOKR music royalty interests will give access to a ray of revenue streams from one tracks of very popular artists with a big fan base to whole catalogues.
This will allow on the one side investors to diversify their portfolio and enable unlike as an investment into an investment funds -as for example initiated by Hypgnosis- to create specific exposure to the success of a certain artist.
What is the instrument?
The Notes qualifying as transferable securities and are issued by Luxembourg special purpose vehicle. The Notes instrument will have a life span of 10 to 15 year until maturity.
Who are the investors?
Investors who seek to invest in a largely uncorrelated asset class with the overall markets. In a stagflation scenario it may in addition give access to income streams which are not as much impacted by economic factors as people will not stop listening to music in economical difficult times.
About STOKR
STOKR is the EU’s leading primary issuance marketplace for tokenized securities, where smart investors connect with and fund innovative businesses. STOKR operates out of Luxembourg and provides entrepreneurs with the full suite of technical deployment, investment structuring, and compliance support for the issuance of digital securities. Such digital securities are issued on the blockchain and can be custodied by the investors in their blockchain wallets.
This article was first published in the Silicon Luxembourg magazine. Read the full digital version of the magazine on our website, here. You can also choose to receive a hard copy at the office or at home. Subscribe now.
