HWAL Inc. Moves to Tokenize Music Royalties, Targeting $500 Million in Assets

HWAL Inc. is leveraging blockchain to tokenize music royalties through a proposed $10 million fund, aiming to democratize royalty ownership and potentially scale to $500 million in assets under management.

Bay Area Metrowire Staff
••Business
HWAL Inc. Moves to Tokenize Music Royalties, Targeting $500 Million in Assets

HWAL Inc., a multimedia holding company, is pursuing a tokenized approach to music royalties as the broader real-world asset (RWA) market expands, aiming to make royalty ownership and distribution more transparent and accessible through blockchain-based structures. Through its 50%-owned Lunar Records venture, the company formed Lunar Records Fund 1 in January 2026, a proposed $10 million fund built around Bitcoin-based $1 tokens that would provide holders with monthly distributions tied to royalties from 1,000 songs. HWAL says it could eventually expand the model to as much as $500 million in assets under management.

The initiative arrives as tokenization of traditional assets gains momentum, with music royalties seen as a prime candidate due to their predictable cash flows. By using blockchain, HWAL seeks to streamline royalty payments, reduce intermediaries, and open investment to a broader pool of participants. The proposed fund would allow token holders to receive monthly distributions, creating a direct link between music consumption and investor returns. Beyond streaming royalties, the company is seeking additional licensing opportunities for its music catalog across film, television, video games, the metaverse, and advertising.

For investors, the move signals a potential new avenue for yield generation that is uncorrelated with traditional markets. However, it also raises questions about regulatory compliance, valuation of music rights, and the operational challenges of managing a large portfolio of songs. HWAL’s existing focus on entertainment, space archiving, AI, and digital media assets provides a foundation, but the success of this venture will depend on execution and market adoption.

To view the full article, visit https://ibn.fm/8aHvJ. For more information about HWAL, visit https://www.hwal.net. The latest news and updates relating to HWAL are available in the company’s newsroom at https://ibn.fm/HWAL.

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