Coinbase, the largest cryptocurrency exchange platform in the United States, has partnered with music distribution company, UnitedMasters, to offer its music artists the option of getting paid in crypto for the music they create. According to Coinbase’s statement in a blogspot, “UnitedMasters believes this will further financially empower the creators behind the music and decentralize the economics of the music business.” Coinbase’s partnership with UnitedMasters follows a recent announcement where it said that it was making it easy for businesses to pay their employees in cryptocurrencies.
The partnership aims to give independent artists more power by offering them transparency, equity, and control over their earnings. UnitedMasters said that it will give its artists the freedom and flexibility to be paid, in full or in part, in US dollars or a cryptocurrency of their choice. They can also select how much of their royalties they want to receive in cryptocurrencies, and which coin they want to use, the companies said. UnitedMasters doesn’t need to hold onto any cryptocurrencies itself.
The payments are set to be made through Coinbase’s payroll product. “Coinbase’s mission is to increase economic freedom in the world, and we applaud UnitedMasters efforts to level the playing field for their community of musical artists. We want to make it easy for every company to pay employees in crypto. This is the future of payroll, Surojit Chatterjee, the Chief Product Officer of Coinbase said.
Also talking about the partnership, Steve Stoute, UnitedMasters’ Chief Executive Officer, in a separate blogpost said: “Working with Coinbase to give independent artists the ability to be paid in crypto is a natural next step for us, using technology to ensure that the economics of the music business favour the creators behind it. As the financial sector continues to evolve and innovate, we’re committed to putting our artists in the best position to benefit from these changes.” The blogpost explained further that “upon receiving their payout in a number of cryptocurrencies, independent artists can then utilize Coinbase’s financial resources to spend, earn, trade or borrow.”
With this latest development, UnitedMasters is now one of the first companies in the music industry to offer the service to its artists, according to a Bloomberg report.
Coinbase also announced that it will launch an NFT marketplace before the year runs out and will allow some users to gain early access by signing up for a waitlist.