Jay-Z’s Roc Nation is taking a bold step into the emerging music royalty trading market with a new partnership with South Korean fintech startup Musicow. The collaboration, set to launch in Q1 of this year (2025), aims to bring fractionalized music royalties to U.S. fans, allowing them to invest in and earn alongside their favorite artists.

Dubbed the first Music Equity Service Provider in the U.S., the initiative offers a novel way for music fans to invest in royalty shares, following Musicow’s proven model of allowing music rights owners to sell stakes in their songs’ revenue. This fractionalization opens the door for everyday consumers to diversify their portfolios with an asset class previously reserved for the industry’s insiders.

Roc Nation and Musicow are positioning themselves as direct competitors to JKBX, which has already launched in the U.S. with the backing of notable artists and songwriters. While JKBX has been facilitating royalty share purchases since securing SEC approval in 2024, the Roc Nation-Musicow partnership aims to bring a fresh, fan-first approach to the music investment landscape.

The platform’s primary goal is to create a more inclusive and symbiotic music ecosystem. Artists will be able to fractionalize their royalty earnings, selling shares of their music to fans, who in turn can earn a share of the royalties generated by streaming, airplay, and other uses. For fans, it’s an opportunity to engage with music on a financial level — offering an alternative investment class that ties directly to their musical tastes.

“This is about creating a shared ecosystem where both fans and creators can benefit,” said Roc Nation Vice Chairman Jay Brown. “Our mission is to give everyone access to the financial opportunities the music industry offers, empowering artists while democratizing the revenue generated by their work.”

For Musicow, the partnership with Roc Nation represents a massive leap in their global expansion. The company, which has already built a strong foothold in South Korea, is looking to replicate that success in the U.S. market. With a user base of over 1.2 million members and transactions totaling $293 million as of September 2024, Musicow’s business is booming. The company has already secured significant investment, including a $5 million stake from Roc Nation, which now holds a 20% share in the fintech platform.

Woo Rhee, CEO of Musicow, calls the collaboration “an incredible opportunity to drive innovation and redefine the future of the music industry.” He added, “Together, we can unlock transformative potential, creating a new chapter in how music royalties are shared and traded.”

Musicow, which was founded in 2016 and made its mark in South Korea’s music rights trading sector, plans to roll out the platform to U.S. audiences with a bang. Early users who sign up before the platform’s official launch will receive $10 in their Musicow wallet to get started with royalty investments right away.