Lunar Records Launches Fund to Tokenize Music Royalties

Edgen Crypto

·Feb 06 2026, 02:10

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Key Takeaways

Lunar Records announced the formation of a new fund to transform music royalties into tradable digital assets. The move signals a growing intersection between the creative industries and blockchain-based finance, aiming to increase liquidity for intellectual property.

New Investment Vehicle: Lunar Records announced on February 5, 2026, the creation of Lunar Records Fund #1, a fund established in January 2026 to tokenize real-world music royalties.
Strategic Partnership: The fund is operated by Lunar Records, a joint venture formed in 2023 by Melody Trust, LLC (an HWAL, Inc. company) and the SI Blue Foundation.
RWA Trend: This initiative taps into the expanding market for Real-World Assets (RWAs), seeking to unlock new capital and investment opportunities in music rights.

Lunar Records Debuts Tokenized Music Fund in January 2026

Lunar Records formally announced the creation of Lunar Records Fund #1 on February 5, 2026, establishing a new vehicle for investing in music royalties as a tokenized real-world asset (RWA). The fund, which was officially formed in January 2026, represents a strategic push into digital finance by the music entity. Lunar Records is a joint venture founded in 2023, combining Melody Trust, LLC—a subsidiary of the publicly traded HWAL, Inc.—and the SI Blue Foundation. The initiative aims to fractionalize ownership of music intellectual property, potentially making it accessible to a broader base of investors through blockchain technology.

New Structure Aims to Bridge Music IP with Digital Assets

The fund's core strategy is to convert traditionally illiquid music royalty streams into tradable digital tokens. This model seeks to solve long-standing challenges in the music industry by creating a more liquid marketplace for creative assets. By tokenizing these royalties, Lunar Records Fund #1 allows investors to buy and sell stakes in a music catalog, offering a novel way to gain exposure to the financial upside of creative works. This structure follows the firm's history of blending art and technology, which gained notice when its music catalog was archived in a time capsule that landed on the moon on February 22, 2024, marking the first U.S. lunar landing since 1972.